Sunday, September 24, 2023
HometechnologyWhat to expect from Apple, Microsoft and Facebook this year

What to expect from Apple, Microsoft and Facebook this year

What tech companies are poised for big things in 2014? Not all companies are destined for glory, but there are a few names to keep an eye on, said Philippe Laffont, founder and CEO of Coatue Management.

Laffont, whose tech focused hedge fund has $9 billion under management, broke down what to expect from some top tech companies this year on CNBC's "Squawk Box."

(Read more: Five tech trends for investors to watch in 2014 )


Apple may be ready to unveil something big this year, Laffont said.

"I'm sort of wondering what Apple is going to do right now, they haven't done anything for a couple of years and I kind of hope this is the year they will," he said.

Laffont, whose firm has a large position in Apple, said he expects the company to make a big move into the home space, though he didn't specify exactly what that might be.

"It's been sort of a tough stock for the last couple years, but we have a large position around these prices," Laffont said. "I just find it strange that this is one of the great stocks selling at one of the cheapest multiples in the market, and something is going to change."


Microsoft needs to restructure this year but probably won't, Laffont said.

"It's strange. It seems no one wants to be the CEO, and there's two ex-CEOs on the board," Laffont said. "This is a story, where if someone was allowed to do basic stuff, the stock could double. So many cost-cutting opportunities, so much restructuring opportunities."

Laffont said it's unlikely the next CEO will be able to do what's necessary because Microsoft is trying to keep up with the competition when it comes to innovation.

"When you see the innovation of Apple and Google and you're Microsoft, you don't want to cut all this R&D because you are thinking, 'I want to get back to be just like Apple and Google,'" he said.

"But in the meantime, what they need is restructuring. I think the R&D cost at Microsoft is five times the size at Apple, but they don't seem to be coming up with anything new."

Twitter and Facebook

Social media companies' valuations will continue to perplex in the next year, Laffont said.

"These are tough companies because the companies are so great, but sometimes the valuation, you scratch your head," he said. "The key with Facebook and Twitter is to figure out five or 10 years out, is it really two or three times earnings? Or not?"

Laffont said he is very optimistic about Facebook with its Instagram platform, in particular. He also said he expects Snapchat, the ephemeral photo sharing app, to continue to expand.

By CNBC's Cadie Thompson. Follow her on Twitter @CadieThompson.


Most Popular