Apple Inc. (NASDAQ:AAPL)’s impressive rally experienced last year, continues to be the talk among a number of investment firms, which remain buoyant that the same rally will continue this year. During an interview on CNBC, Firsthand Capital Management CIO, Kevin Landis, reiterated that Netflix, Inc. (NASDAQ:NFLX) also joins Apple as the top picks for 2015.
Apple continues to register positive sentiments in the Street based on the ongoing strong demand of the iPhone 6, as well as the perceived growth potential of its mobile payment system.
“The striking thing about Apple Inc. (NASDAQ:AAPL) is, it is conservatively valued. It has such big market cap that people don’t feel like it can sustain a high multiple, and you can justify its current valuation based on existing products. We do not know how big the Apple watch is going to be we don’t know how big Apple Pay is going to be, but that is all upside,” said Mr. Landis.
It is still a tricky situation to own Apple Inc. (NASDAQ:AAPL) at the current margins at the back of ongoing skepticism about iWatch as well as the fact that most of the big hedge funds own the stock.
“It is a little bit late for people to stampede in Apple Inc. (NASDAQ:AAPL), you just have, to have business fundamentals improving and this stuff going up. No you are not going to double your money in Apple,” said Mr. Landis.
Netflix, Inc. (NASDAQ:NFLX) might not have had the best of runs in 2014 but still makes it, into Landis top tech picks for the year having shown some recovery signs since the start of the year. The stock continues to be seen as a better momentum stock in the industry at the back of huge optimism that in the months to come, it might drive up the company’s valuation.
The main concern at the moment is Netflix, Inc. (NASDAQ:NFLX)’s subscription numbers that were a point of concern last year having dropped in the wake of the company increasing its subscriptions charges. It awaits to be seen how the giant video streaming company will respond to the declining subscription numbers, as well as the imminent competition in the space.
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