Apple Inc (NASDAQ: AAPL) had a fantastic 2021, with the stock up more than 35%, hitting $3.0 trillion in market cap, but GlobalData’s Cyrus Mewawalla doesn’t expect a similar performance replicated this year.
Mewawalla doesn’t see upside in Apple
According to Mewawalla, Apple is the least likely in mega-cap tech to grow from here. Stating his reasons for the dovish outlook on the iPhone maker, he said on CNBC’s “Squawk Box Europe”:
We’ve had Tim Cook as the CEO for about 10 years, and his execution has been absolutely phenomenal. The market cap has risen from $350 billion to $3.0 trillion. But in that time, there’s been almost no innovation apart from possibly the Apple Watch.
Mewawalla has confidence in Apple’s ability to maintain its valuation but doesn’t see any significant upside unless the tech giant delivers on its promises of an autonomous car or the AR/VR headsets.
His forecast for Apple is much different from Loup Ventures’ Gene Munster, who said last week that Apple could be $250 stock.
Mewawalla’s outlook on the tech sector
Mewawalla, however, has a positive outlook on technology at large. Recovery in these stocks, he said, is a matter of “when” and not “if”.
U.S. tech stocks will rise no matter what because of the big themes like metaverse, web 3.0, cryptocurrencies, and quantum computing. If you’re in that space in the tech stocks, I think you’re going to benefit almost regardless of macroeconomic issues.
His remarks come a day after JPMorgan’s Jamie Dimon said the U.S. Fed should raise rates at least four times in 2022, which is expected to be an unfavourable economic backdrop for the tech space.
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