3 top tech stocks for 2014

Apple, eBay and Angie's List will lead the way in their respective niches of mobile, e-commerce and local technology, says one analyst.

By MSN Money Partner Dec 27, 2013 5:52PM

CNBC on MSN MoneyBy Bruno J. Navarro, CNBC.com


The best stocks for 2014 are leaders in strong sectors, Piper Jaffray analyst Gene Munster said Friday.


"It's pretty straightforward: Pick the themes, then pick the winners within the themes," he said. On CNBC's "Halftime Report," Munster identified three areas of technology that he believed would do well next year: mobile, e-commerce and local.


"We think Apple's (AAPL) a great play for mobile in 2014," he said.


Munster said that China Mobile's recent deal to carry Apple products should add about 5 percent to Wall Street earnings estimates for the March quarter.


He also said that Apple has generally introduced new product categories every three years. "If there's a three-year window to own it, now's the time to own it," he said.

Munster also said that an Apple TV was still in the works.


"We've been dead wrong on the timing of this," he said. "We still believe that Apple is working on a TV based on what some of the company's comments are about new product categories and some other work we've done on the supply chain. We continue to believe that that's going to happen in 2014."


The would-be Apple TV has yet to show up in the stock's valuation, Munster added.

"Investors don't care about it," he said. "They're not giving any valuation to Apple, and ultimately a lot of people watch a lot of TV, and Apple's got an opportunity to reinvent that part of their lives."


eBay headquarters in San Jose, Calif. (AP Photo/Ben Margot)Munster also like the e-commerce space.


"You just can't bet against this trend," he said. "About 10 percent of what is bought is bought online in the U.S., and eBay (EBAY) is kind of the poor man's version of Amazon (AMZN)."


Munster's top pick in the space was eBay because of its online payment business PayPal.


"Your phone is going to become your wallet, and eBay has a great shot at becoming one of the key players within that," he said.


Lastly, Munster said that he liked Angie's List (ANGI) as the top play on local goods and services.


"There's a lot of friction when you buy local," he said of the website that gathers customers' reviews of local services, such as plumbers, electricians and babysitters.


"Highly controversial, but we think that they're going to do a good job re-accelerating some of their revenue growth in 2014," he said.


Piper Jaffray holds long positions in Apple, eBay and Angie's List. Munster personally has no positions in those stocks.


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1Comment
Dec 28, 2013 8:53PM
avatar

"eBay ... will lead the way in their respective niches ..."


Dream on ...


The only measure of a listed company’s success is its share price; Johnny Ho is now into the seventh year of his “three-year turnaround” of eBay; he’s expended a whole lot of shareholders’ funds, and still there is little sign of improvement.
 
So, what does the “smart money” on Wall Street think about the progress of Johnny Ho’s dream of converting eBay into the “Westfield Mall” of online shopping? Well, in late 2007 both eBay’s and Amazon’s stock prices were ~$40; now, with the US stock market at an all time high, eBay is still only ~$54 and Amazon is ~$399. What more telling data does anyone need to know that Johnny Ho has been an unmitigated disaster for all concerned—except for himself, of course?
 
Since the Ho arrived on the scene, eBay’s long-suffering long shareholders have, relatively speaking, been effectively going backwards—at a quite steady rate of knots—notwithstanding the nonsense that constantly spews from the eBay Dept of Spin …
 
The only people making any money out of eBay are Johnny Ho and the gaggle of like-bodied headless turkeys that he has surrounded himself with, and with whom he apparently spends all day blindly running around in circles in the eBay executive suite, as they dream on about how they are going to re-invent the eBay marketplace as the “Westfield Mall” of online commerce for every leading retailer, brand and manufacturer across the world … Dream on, Johnny Ho …
 
The real question is, just how much longer are eBay’s major institutional investors going to let the Ho turkey survive with such continuing poor results and increasingly bad consumer responses in the media, about which not even all the hot air generated by the eBay Dept of Spin can counteract?


I also have to wonder if Pierre Omidyar has ever thought about just how much more fabulously wealthy he might now have been had he not ok'd the handing over of the control of eBay to this incompetent, destructive, unscrupulous, narcissistic sociopath—Johnny Ho?
 
Clearly, the message from the smart money on Wall Street is that eBay Inc. is a "dog" and Johnny Ho is an utterly incompetent dog handler ...


The ugly reality of eBay Inc.: 
eBay's crooked auctions marketplace ...  
eBay Motors: Auction Fraud Galore …  
eBay's clunky, unscrupulous "PreyPal" ...  
The ongoing joke of eBay Inc. ...  
Fun quotes from the eBay executive suite ...  


eBay / PayPal / Donahoe: Dead Men Walking ...



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