gene munster wrote that the iphone maker could chase its 80% rally in 2019 with another gain in 2020.o discuss this and all the other predictions, gene joins us from minneapolis. i want to take a look at a chart here inside my terminal. you know this better than anyone else. the share price which is having a massive run-up, which actually hasn't caught up to the shares. $350 on the stock. why is 350 your fair value? gene: i think fair value is somewhere between 350 and 400. i wanted to have a target that i felt comfortable putting out there as a prediction. it also is representative of a consumer staples company. think of coca-cola or procter & gamble. suggests a multiple similar to facebook. typically apple hasn't gotten that multiple because it is a hardware company. investors have been concerned about hardware companies. when we think about what the proper multiple is, i think this view that a hardware company is a great business, defined by what is impressive cash flow -- if you look at apple, they generate as much cash as them combined. if we use that as the goal stick here, the

we will get thoughts from gene munster. hospitality disruptor.hort-term holds that combine elements of hotels and apartments. we will hear from the ceo. but first to our top story. record highs on tuesday on averages, but something interesting happened during the day. the s&p 500 tech index closed down slightly. is this a sign of trouble to come? joining us to talk about what this means is bloomberg's abigail doolittle. i want to take a look at a chart i'm showing in my terminal which highlights some of the profit taking. i am wondering if that is what happened today given the overbought levels on the tech sector. abigail: i think you are dead on with that, taylor. that is exact a what that represents, you little bit of profit-taking. that stock up so much this year, and that is really what makes today so interesting, the nuances you were talking about, the nuances, each finishing at a record high. the stocks and chip index also finishing i record high. the reason that stands out is they are leading up all year, up more than 4% on the year, on pa

taylor: stay with us, because joining us on the phone is gene munster. at is your initial reaction to this? gene: i was not expecting this but in some ways i was not surprised, in part just because of the 10 year, how long both of them had been there. separately, the concept that the company is moving into a different chapter. google proper, the next chapter, will be a lot around policy, data privacy, and regulation. what the next couple of years would look like, going through some of the minutia. i'm not surprised to ultimately see this. there is another part of me that is kind of sad because it had such a profound impact on our lives, just a reminder that the greats move on. taylor: how much can this be seen as a vote of confidence in sundar pichai? gene: undoubtedly a vote of confidence. i think it is more related to what sergey and larry ultimately want to do than it is a vote of confidence. but it is a vote of confidence nonetheless. if they did not have that, he would not have been the one tapped for the broader role. taylor: we talked a few weeks a

netflix, we've got gene munster with us to talk 2020 predictions. and

i want to get back to apple and bring in gene munster. y congratulations. number one, you got to give props and kudos up front. you were serious about this. you were determined, when everyone else said no, you said yes. now you are even going to be a little more bold because you say apple could go to 400. over what time frame and what gets it there? >> i think we are a year, year and a half away from the $400 mark. really, this is all about going forward. where is the stock going to go in the next call it year to two years. so today we came out with our predictions for 2020. we have apple as our top performing fang stock. i think the road of least resistance would be to say things were good last year, unlikely that that continues. but i think that that will not reflect the truth. i think ultimately, there is a big disconnect between apple's fundamentals and the stock. despite its recent move and just to try to put some definition around that, if you just simply apply a facebook-like multiple to current apple shares, that takes you to about

taylor: that was pierre ferragu of new street research and loup venture's gene munster.re the most downloaded in 2019? we will find out next. this is bloomberg. ♪ taylor: closing out a decade, 2019 has been a landmark year for mobile with the rise of tictoc on the launch of new video services like disney plus. here to discuss this year's big players in the world of mobile apps, executive vice president of app annie. >> i think the key thing we saw from a download perspective is that the big, popular social and communications apps continue to dominate again in 2019. if you look at the top 10, you will see social apps were seven of the top 10 in terms of downloads, with facebook claiming four of the top five. taylor: one of those that caught my eye was tinder. how has tinder's explosion changed the social media landscape? >> we are seeing that dating apps are starting to make their mark. tinder claimed that number one spot in monetization outside of games. i think it is an indication of the natural social experience of what dating can -- it's a social component, right? it'

gene munster is one of the wrotenown apple analysts, the apple iphone maker could chase another 20% gainsand that is thanks to things like we the buds and valuations. joining us with her outlook for 2020 is tengler wealth management chief investment officer nancy tengler. more and more the last few days, since the phase one of the trade deal has been outlined, people are saying there is lots more to go in the rally. are you one of those? i'm optimistic. i don't know if there is lots to go. one of the important things that many people are not talking about is there is a lot of liquidity built up in money market accounts, etc., growing at 10.5% per year, all the while that stocks are rallying. that is good news for investors because it means there is money on the sidelines to drive the next leg in this bull market. you put that would money to work, what are you telling your managers, clients? nancy: we put it in a couple of places. we went well overweight in cyclicals in june, driven mostly by our technology holdings. we still like that trade. capex has grown dramatically in the last 20 yea

taylor: stay with us, because joining us on the phone is gene munster. gene: i was not expecting this but in some ways i was not surprised, in part just because of the 10 year, how long both of them had been there. separately, the concept that the company is moving into a different chapter. chapter,oper, the next will be a lot around policy, data privacy, and regulation. what the next couple of years would look like, going through some of the minutia. there is another part of me that because it had such a profound impact on our that thest a reminder greats move on. taylor: how much can this be seen as a vote of confidence in sundar pichai? undoubtedly a vote of confidence. i think it is more related to what sergey and larry ultimately want to do than it is a vote of confidence. but it is a vote of confidence nonetheless. if they did not have that, he would not have been the one tapped for the broader role. taylor: we talked a few weeks ago when you had apple ceo tim cook really work the politics. in this day and age, you are not just running a company. yo

ceoen to what loup ventures gene munster had to say for tesla's global ambitions. a specific target. it is worth more than the current market cap. it will be bumps in the road. china will be a positive swing factor but ultimately this a much bigger ambition beyond china and capitalizing on the 90 million vehicles sold every year and turning those into electric vehicles. investors are watching closely to see what this means for tesla stability in china and ability to go global. they have plans are manufacturing plants in europe. for manufacturing plants in europe. 1000musk wants to produce cars a week in china. we are going up against the end of the year and haven't reached that target yet. we will see if they can hit that next year. paul: thank you so much for joining us. let's get a quick check of the latest business flash headlines. musk has great expectations -- elon musk has great expectations . he says spacex could launch its starship vehicle in the next two or three months. it will transport people to the moon and mars. he unveiled this in september. shery: e

taylor: that was gene munster and gabrielle coppola.th tesla, elon musk did it again in november. this time it was for 200,000 truck,s for tesla's new despite the infamous launch. i think the truck does have appeal, particularly to younger people, to people in l.a., to gamers. some at first said they hated it but over the week they said they loved. he looks like nothing else on the road. even though it is far from production, i believe they have vision. taylor: i cannot stop watching the video of shattering that glass. what was the reason they have come out with in the last few days as to why the glass shattered? think ire not alone, i have watched it 20 times. showingline weeded out testing the glass before that demonstration. yesterday when they hammered the car with a sledgehammer, that somehow could have hurt the glass. why thesn't explain window also shattered. taylor: my producer and i were talking about this, and he said why when you want your window to? ? be able to shatter in an emergency situation if you're underwater or somet

taylor: that was bloomberg technology's alistair barr and gene munster of loup ventures.he sheer number of founders and ceos that have now to -- now stepped down in the tech sector, i got insight from challenger. he was joined by bloomberg technology's tom giles. >> we are going through one by one the biggest companies are making that transformation. it has been happening for a long time -- steve jobs passed away a decade ago. it has been one big company after another. we have a couple left. the major one facebook and jeff bezos with amazon. what is happening is as these companies mature, they no longer have the same need for visionary founders, the engineer who came up with these whizbang products. you need someone who is a solid manager, someone who can manage atupply chain like tom cook apple. someone who has management shops, the sensibilities to run a company. as we talked about larry and ser their not known for management skills. >> what do you make of this transition from the first generation to the second generation of these leaders? >> we have seen a lot of chang

joining us now with some answers or some guesses, gene munster of luke ventures, john freeman of cfrauys, good morning gene, i think the 2000s in tech were about the web and open source, whether you look at consumer enterprise. the 2010s were about mobile and cloud. i would argue 2020s are poised to be about embedded in wearable and automation, ai, whatever you want to call it. what do you think the main story of 2020 is going to be tech wise, and who is poised to take best advantage >> definitely the right question, agree when you were posing that, the first word that popped in my mind was wearables. automation was the second piece. and to answer your question, who is well poised for that, i think it is surprisingly a company we know well, apple best posed with wearables. a year ago, the wearables business which they don't give total clarity on grew around 40%. recent quarter reported, september quarter grew close to 65%. there's something going on around wearables with apple specifically, their ability to bring those together when you think more as we advance down other themes, you

gene munster putting a note out saying that it will lead again next year. we talked about tailwinds. tesla is down almost 1% now, even though we are hearing that the china delivery will begin on monday, the first delivery of a tesla in china, the china built model three. let's get to europe. we are open again after two days of holidays. stoxx 600 is up 0.2%. the dax is leading. resources are the top performers today, along with utilities. the dollar index weaker. let's get to the markets now. joining us in studio is dennis debusschere, evercore isi head of portfolio strategy. we have a great piece on the bloomberg today talking about the decade beginning with everything crumbling and a lot of panic, and now we are heading into a new year when apparently nothing can go wrong. dennis: i think part of the reasons the market is acting like that is because people think everything is going to go wrong. that has created what we call the silent melt up. this is actually related to the fire and ice title, which i think is excellent, because there has been a complete

taylor: we were speaking to gene munster, and if you look at the chart i'm showing in my terminal, heessure is off tesla are now, they have a really good leeway, good legroom to run given their free cash flow has turned positive, they are more profitable. so this really gives them some time to go back and look at that production target. do you agree that they are in a fairly decent position to be looking at the cyber truck and its production? dana: i think the goal of the company has been to disrupt market segments. the ford f-150 is the best-selling vehicle in america. they need to take on trucks. this had a positive run. taylor: that does it for this edition of the "best of bloomberg technology." we'll bring you all the latest in tech throughout the week. tune in each day at 5:00 p.m. in new york, 2:00 p.m. in san francisco. and check us out @technology, and be sure to follow our global news network @tic-toc on twitter. this is bloomberg. ♪ ♪ haslinda: hello, i'm haslinda amin he was born in the soviet union, but calls singapore home. serguei beloussov is an entrepreneur who puts kn

as for apple's performance in 2019, i got perspective from gene munster of loup ventures and new street ferragu. take younterview will back to the beginning of last year, when iphone sales came down very significantly. that was kind of the result of cyclery strong iphone x in 2018. ,phone users are still around they still love their phone, but the first-hand buyers is a group , is a population that is not growing much anymore. because iphones are getting more expensive, they stick to their phone longer and longer. that created a very depleted amount of demand for the iphones in 2018 and 2019 and towards the end of 2019 today, what we had is actually a very successful cycle. that is why you hear so much conflicting feedback from the market and the value chain on chain.d -- value on one hand, there are very obvious indications that the iphone 11 was very well received. . people loved it at the same time, you still see in the market an element of weakness. the fact that you have had 170 million iphone x sold in 2018 and 2019, and that is a lot of phones. people who have them in hand are ki

he joins us with gene munster.morning, guys >> good morning. >> good morning. >> you say apple marches to 300 a share, 10% higher, maybe 350 on 5g iphone what's the down side, the worst case scenario to keep that from happening? >> i think worst case scenario got taken off the table in terms of tariffs that was the dark cloud over apple in terms of china. right now, you go through, with the super cycle, the only risk we see is chinese demand we did the china checks, that continues to be above expectation. i view it as a stock with a 3 in front of it going into next year this took away the dark cloud we saw this morning that's the focus for tech investors, apple, and semis going higher. >> dan, what do you say? where's the up side, can up side in wear abls and services that don't contribute much to profits and revenues help sentiment? >> iphone, rock of gibraltar, i think 185, 190 million units in a super cycle next year. look at air pods, 4 or 5% of revenue, predicting 85 to 90 million units next year with services

i caught up with gene munster, he cites two big ones.vices and wearables don't grow as strongly as expected, that would tarnish the story he says what happens if carriers are too slow rolling out 5g networks, what would that mean for investor expectations about success and traction for the expected 5g iphone coming in september. back to you. >> going to be a huge story, josh thank you very much. along with apple, microsoft, alphabet, adobe hitting all-time highs, intel, levels not since 2000 facebook at a 52 week high tim lesco and mike santoli are with us. senior markets commentator tim, we talked about why collectively the sell side got apple so wrong this year why do you think it was? is it about the model changing to services and the mystery of margins behind that or is it something else >> i think the mystery behind the move to services has been very well covered and apple seems to have successfully maneuvered from a company that made all of the cell phone industry's profits to one that's making profits outside of just the cell phon

as far as analysts go, gene munster telling me for them, it's basically a non-event. they are more worried about the model 3. but it does show how far musk has come to 2018, he's been a lot more tame on twitter. liz: just checking the stock for the very last moment. up 1.66%. not getting dinged. keep us posted. thank you very much. >>> chipotle's farm aid. with the closing bell ringing in 34 minutes, the mexican grill chain looking to wrap its burritos in farm-fresh products grown in a very specific way by very specific people. we will tell you about his latest social commitment in today's fox business brief. chipotle up 91%. . >>> you cannot miss this week's everyone talks to liz podcast. see that guy? he's a champion pizza ceo and philanthropist. hear how this kurdish pizza chain owner overcame homelessness in new york city and built his pizza empire. it is one of these inspirational ceo interviews. i'm dying for you to hear his journey. his recipe for success, you can hear it on alexa, apple, google and fox news podcasts.com. "the claman countdown" is coming right

gene munster, you own a peloton, don't you? i'm not asking about the stock.ton. i don't use it as much as i would like to use it. i am -- i pay $500 a year for the service. it is quite a privilege to be in that one million subscriber group. don't feel like i'm a sexist and ultimately, i do want to quickly weigh in here, if i may, just on this. they are the topics that get circulated around this which i think they are prudent and important topics, that as a society we talk about. then there's this commercial. if you weren't asking, but if i could weigh in, i think that the majority of people actually were not offended by this commercial. i think that we at loup ventures asked a handful of women age 20 to 40 over the past week about this and the overwhelming response was i would love to get a peloton for the holidays. so i think it's important to keep in context, sometimes a very small group can have a huge impact on how people view things in the short term. stuart: that's social media for you. i think peloton will be a major seller this holiday season. gene, t

they have had a recent bit of a bumpy ride, but gene munster, a widely followed tech analyst, says thisng to be very interesting and that these co-founder's would not cede control or be comfortable with anyone in the ceo spot unless they truly supported him, and they believe that is the situation here. there are many tech analysts that believe the company is in very good hands. >> what about timing here? larry page has been criticized for not engaging more as google has been increasingly scrutinized by a whole body of regulators and lawmakers. >> that is a really important point, and there are some mindful of that. they are just surprised the change did not happen sooner. you can see google has done well, but what is ahead, the next chapter, is going to be about policy and data privacy and regulation. one analyst said they really did not picture these two cofounders spending their days testifying in front of lawmakers about these issues when they really are creative types. there's also questions that arise here about what the next year's could look like. again, there are these questions

stock in 2020, that's according to a new note from gene munster among the reasons, continued growth inatch, five new iphone models coming in 2020 and an investor anticipation of 5g i caught up with munster and asked him about risk to his call and he cited two big ones. one, that services and wearables don't grow as strongly as expected and two, what happens if carriers are too slow rolling out 5g networks? what would that mean for investor expectations, she asks, when it comes to traction and success for that expected 5g iphone coming in september guys, back to you. >> josh, thank you mike santoli, i feel like we've been hitting the apple drone all day. >> the stock's up 83% this year! >> and therefore the story has had to flip, right it used to be, well, it's cheap. it's underowned was a line for a very long time i think it's harder to make those cases right now. i do think the market has effectively said, though, it's a less hit-driven business than it used to be and that may be why it traded at such a -- >> those multiple points, we talked about them for some time and suddenly there

gene munster on this program suggested it would go to $350. is everybody else joining the party? what do you think? >> i think the stock has performed so well, the knock on apple, there are still a lot of haters who tell you they don't innovate but they are doing such a great job with their new airpods, with the new iphone, so i think the stock will go higher. one other thing, the saudi aramco company that just went public, up close to $2 billion valuation, that just shows people like roger bannister, when he broke the four-minute mile, it is possible for a public company to trade up around $2 billion and apple will catch them. stuart: $2 trillion, by the way. >> thank you. stuart: where did that come from? >> just threw it out there. stuart: from the distant past. 1953. beat the four-minute mile. ashley: in baggy white shorts. stuart: yes. >> once they saw it was doable. that's the point i was trying to make. stuart: i don't want to digress but he was the last great amateur. last great one. all right. move on. >>> let's move on to microsoft. why don't we. also in record territor