5G growth, record Tesla deliveries, and streaming war fallout: These are one stock analyst's top 10 predictions for tech in 2020

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Top tech stocks including Facebook, Apple, Amazon, Netflix, and Google, commonly known as FAANG stocks, are poised to flex their muscles in 2020, according to Daniel Ives of Wedbush.
A number of "transformational trends" such as 5G, cloud computing, autonomous cars, and streaming will be front and center for Wall Street analysts, he wrote in a Monday note.
Here are Ives' top 10 tech predictions for 2020.
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In 2020, the FAANG stocks — Facebook, Apple, Amazon, Netflix, and Google — are poised to flex their muscles, and certain themes will drive tech, according to Daniel Ives, an analyst at Wedbush.

"Heading into 2020 there is clear momentum for the tech space/ stocks as a number of transformational trends such as 5G, cloud, autonomous, and the streaming content wars will be front and center for the Street," Ives and Strecker Backe, also a Wedbush analyst, wrote in the note published Monday.

Tech stocks have had a blockbuster year in 2019, putting the S&P 500 information technology sector on track for its best year since 2009. Soaring gains from stocks such as Apple and Advanced Micro Devices have led the sector's performance.

Next year, Ives thinks that Apple will secure the top spot in 5G, according to the note. In cloud, he thinks that Microsoft and VMware will reign supreme, but that CyberArk, Zscaler, and Palo Alto Networks are the top cybersecurity names to "play the fertile cloud trend."

But Ives' predictions aren't unanimously positive. He predicts that "winter is coming" for Slack in 2020, as it will become more difficult to compete with Microsoft and its Teams initiative.

Here are the top 10 tech predictions for 2020, according to Daniel Ives of Wedbush.

10. Google may make a strategic cloud acquisition

"Google and its major cloud initiative, GCP, will potentially make a major strategic acquisition of a public could vender," Dan Ives wrote in a Monday note. The potential purchase would be "to catalyze Kurian's efforts chasing after the likes of MSFT and AWS in the $1 trillion cloud race."

Ives has "outperform" ratings on Microsoft and Amazon and price targets of $185 and $2,000, respectively.

Source: Wedbush

9. AB5 will be a "gut punch"

"AB5 California legislation will be a major 'gut punch' to the Gig Economy," Ives wrote Monday.

He continued: It will "throw a major wrench in the business models of Uber, Lyft, DoorDash, Postmates, and other players once passed (with all eyes on the impending court battle)."

Ives has an "outperform" rating and a price target of $45 on shares of Uber, and he has an "outperform" rating and a price target of $75 on Lyft.

Source: Wedbush

8. FAANG will further expand

"FAANG tech stalwarts such as Google, Amazon, and Apple further expand into healthcare and banking verticals through both organic as well as acquisitions to broaden their monetization engines and consumer product footprint," Ives wrote.

Source: Wedbush

7. It could be the end of Uber Eats

"Uber will need to significantly curtail/possibly shut down Uber Eats given the lack of profitability and competitive headwinds in this business segment," Ives wrote.

Ives has an "outperform" rating and a price target of $45 on shares of Uber.

Source: Wedbush

6. Cybersecurity will consolidate

According to Ives, "2020 will be the year of consolidation in cyber security as we believe both financial and strategic buyers will be aggressively looking at acquiring public/ private vendors."

Ives has "outperform" ratings on CyberArk Software, Palo Alto Networks, VMware, and Zscaler. His price targets for the companies are $145, $275, $210, and $80, respectively.

Source: Wedbush

5. There will be winners and losers in the streaming wars

"The streaming wars will result in clear winners/losers with Disney and Iger the juggernaut that will help disrupt 10%+ of Netflix's installed base," Ives wrote in the Monday note.

Ives has an "underperform" rating and a price target of $188 on Netflix.

Source: Wedbush

4. Microsoft will beat Amazon in cloud

According to Ives, in 2020, "MSFT/Nadella will win the next stage of the cloud war vs. Bezos/Amazon."

Ives has an "outperform" rating and a price target of $2,000 on shares of Amazon, and an "outperform" rating and a price target of $185 on Microsoft.

Source: Wedbush

3. Tesla will be successful in China

"Tesla will find success in China with Giga 3 and potentially hit the key 100k delivery number quicker than the US/Europe trajectory and be a demand tailwind," Ives wrote.

Ives has a "neutral" rating and a price target of $370 on shares of Tesla.

Source: Wedbush

2. There will be regulatory fines for FAANG

Ives predicts that in 2020, "FAANG regulatory headwinds will result in fines, but NO business model changes."

Ives has "outperform" ratings on Facebook (price target $250), Apple (price target $350), and Amazon (price target $2,000). He has an "underperform" rating on Netflix (price target $188).

Source: Wedbush