The End Of The FANG Era? Gene Munster Makes The Case

FANG investors may want to consider a portfolio shuffle, as the acronym used to describe Facebook, Inc. FB, Amazon.com, Inc. AMZN, Apple Inc. AAPL Netflix, Inc. NFLX, and Alphabet Inc GOOG GOOGL will undergo a divergence over the next year, according to Gene Munster.

The Analyst

Loup Ventures' Munster, a research analyst turned venture capitalist, talked FANG stocks on CNBC.

The Thesis

The era of FANG may come to an end over the next year and the tech sector will be split into "haves" and "have-nots," Munster said. The haves will include Amazon, Apple, Alphabet, and Tesla Inc TSLA will "enter that mix," as the electric auto maker's recent earnings report signals it can be profitable and won't need to raise cash, he said.

In Munster's view, the have-nots are Facebook and Netflix, as the bullish case for both of the names isn't as compelling as it has been in the past, he said. Facebook's growth over the past year came at the expense of gaining share in the online video marketing space, and Netflix's growth came from new members, he said

The problem for both companies moving forward is that neither has the "massive, open-ended markets" that other names boast, such as health care initiatives or self-driving cars, Munster said.

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Screenshot courtesy of CNBC.