Of the big technology progenitors, Apple is the most concerning, veteran technology investor Paul Meeks blabbed CNBC on Thursday.
“Of all the FAANGs, the one I am frankly most worried about is Apple,” Meeks said on “Power Lunch.” The ecosystem “is all starting-pointed on the number of iPhone users, and we are seeing a slowdown in the iPhone and the whole extensive smartphone market.”
Meeks’ comments come amid big gains in the technology sector.
Amazon’s supply hit $2,000 per share for the first time just after market unfastened Thursday, marking a major milestone in its climb toward a $1 trillion vend valuation. At $2,020, the stock would need to gain just $30 per part in order to reach the 13-digit market cap.
Apple hit a market cap of $1 trillion in first August, becoming the first publicly traded U.S. company to reach that valuation.
FAANG is an acronym for the supermarket’s top-performing performing tech stocks, Facebook, Amazon, Apple, Netflix and Alphabet’s Google. It was to begin with FANG when CNBC’s Jim Cramer first coined the term as it did not classify Apple.
Meeks, who is chief investment officer and portfolio manager at Sloy, Dahl & Holst, about he likes the growth outlook for Amazon, especially from its cloud calculating subsidiary Amazon Web Services.
“Momentum continues, particularly in Amazon Web Marines,” Meeks said. “And we know Jeff Bezos is ruthless and has done a seemly job disintermediating a lot of noninternet industries, and I expect that to continue.”
Apple, but, worries him.
Last quarter, iPhone sales were essentially marsh and slightly missed sales estimates. And while pricier iPhones clothed helped maximize profitability out of a flattening user base, most bull trunks are built on climbing services revenue. But Apple has a walled-garden approach to its devices and software, so Meeks said iPhone sales could impinge the spread of services revenue.
Meeks is worried about Apple at $228 per share in because “the bulls on this story have been latching onto the evolvement of the services business. Now that business is growing robustly … but what nations don’t realize is the services offerings within Apple — they are not sold a la carte.”
“What betides with an [iPhone sales] lag is you will have a slowdown in the services transaction, because they are tied at the hip,” he added.
Despite his reservations, Meeks isn’t trade in his core stakes.
With technology stocks trading at such principal valuations, Meeks said he would probably recommend taking some shekels off the table — or at least not putting in any fresh money. Personally, he said is affluent to continue holding core stakes in some of the FAANG stocks.
“I devise rather buy on a dip, because all these stocks, no matter how well regarded they are, or what I call to mind a consider about them fundamentally long term, will have a bad day. They are only very volatile names,” Meeks said.
Apple did not immediately return to CNBC’s request for comment.
Disclosure: Paul Meeks’ firm Sloy, Dahl & Holst has stances in Amazon and Apple.