Gene Munster Talks Apple, Amazon-Target, Tesla On PreMarket Prep

Loup Ventures managing partner Gene Munster joined Benzinga's PreMarket Prep trading show Thursday to discuss a number of popular tech stocks, including Apple, Inc. AAPL, Amazon.com, Inc. AMZN and Tesla, Inc. TSLA.

Rotten Apple?

Wall Street hasn’t been happy with Apple’s recent earnings report, but Munster said investors shouldn’t read too deeply into one bad quarter.

“Obviously if iPhone units plummeted, that would be a problem. But if they can essentially keep their base flat, which is about 800-million-plus active iPhones ... I think this [revenue] story can grow in the mid single-digit level and should garner a higher multiple than it has today."

Amazon And Target

When asked about Amazon, Munster doubled down on his previous prediction that Amazon may be interested in a buyout of Target Corporation TGT.

“We’re going to [be] wrong on our timing of when they buy Target, but I feel that eventually they will buy Target and really start to disrupt traditional brick-and-mortar,” he said.

Munster said Amazon shares don’t have the valuation support seen in Apple shares.

“That has been the fear of getting behind Amazon stock since the share price was $100,” he said.

Tesla’s Timeline

Munster discussed Tesla and CEO Elon Musk. Munster has criticized Musk throughout the year for behavior that has been detrimental to the company and investors.

“Things have cooled down regarding Musk and his tweets, but that doesn’t mean we are out of the woods regarding his behavior and the potential risk that he brings to the company."

Tesla needs a five-year viewpoint, Munster said.

"It’s the best product roadmap in tech. I feel like there still needs to be work done with the board and with Elon."

Tesla has repeatedly said the company won’t need to raise more equity, but Munster said the company may need to raise funds for projects such as the new factory it's building in China.

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Photo courtesy of Tesla.