Wedbush Projects Apple To Dominate 5G 'Super Cycle,' Disney To Beat Netflix

The new year promises positive catalysts for hardware and software players.

“Heading into 2020 there is clear momentum for the tech space/stocks as a number of transformational trends such as 5G, cloud, autonomous, and the streaming content wars will be front and center for the Street,” Wedbush analysts led by Daniel Ives wrote in a report.

The Rating

Ives maintained Outperform ratings on Apple Inc. AAPL, Amazon.com, Inc. AMZN, Cyberark Software Ltd CYBR, Facebook, Inc. FB, LYFT Inc LYFT, Microsoft Corporation MSFT, Palo Alto Networks Inc PANW, Uber Technologies Inc UBER, VMware, Inc. VMW and Zscaler Inc ZS.

He maintained an Underperform rating on Netflix Inc NFLX.

The Thesis

Here are the analysts’ top tech predictions for 2020:

Apple will dominate the upcoming “year of the 5G Super Cycle,” Microsoft will outperform Amazon in cloud development, and Walt Disney Co DIS will beat Netflix in video streaming.

Meanwhile, cyber security will rapidly consolidate, and Google will acquire a public cloud vendor to expand its GCP initiative. Alphabet, Amazon and Apple will build out and acquire into healthcare and banking services.

Tesla Inc TSLA could strike 100,000 deliveries in China faster than it did in the U.S. and Europe, and competition and poor profitability could force Uber to shutter its Uber Eats segment.

In a more macro view, federal tech regulation will drive fines but not changes to business models. Local crackdowns could prove more painful.

“AB5 California legislation will be a major ‘gut punch’ to the Gig Economy and throw a major wrench in the business models of Uber, Lyft, DoorDash, Postmates, and other players once passed (with all eyes on the impending court battle),” Ives wrote.

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