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Tech stocks including Apple won't outperform in 2021 as economy reopens from coronavirus, Wharton professor Jeremy Siegel says

Emily Graffeo   

Tech stocks including Apple won't outperform in 2021 as economy reopens from coronavirus, Wharton professor Jeremy Siegel says
Stock Market1 min read
  • Jeremy Siegel, Wharton professor of finance, told CNBC on Tuesday that he doesn't think tech stocks including Apple will outperform in 2021.
  • Siegel said that Tesla, Zoom, and Docusign "got crazy," while FAANG stocks are more solid but still won't beat the market next year.
  • "If you're in the S&P, I wouldn't worry. But if you have all your assets in those high-fliers, I would be very careful right now," he said.
  • Visit Business Insider's homepage for more stories.

Wharton's Jeremy Siegel told CNBC on Tuesday that he doesn't think many tech names including Apple will outperform the broader market next year.

The professor of finance said that he is not remaining bullish on high-flying stocks in the Nasdaq. He said soaring tech stocks including Tesla, Zoom, and Docusign got "crazy," while FAANG names are more solid, but still won't beat the market in 2021.

"I think among the Apples and all the rest, they're high. I don't think they're going to outperform in 2021 as the economy reopens and we get out of COVID, but they're not as crazy," Siegel said.

Read more: GOLDMAN SACHS: Buy these 19 stocks right now for big future gains once a COVID-19 vaccine is available

The Nasdaq 100 fell at least 3% during Tuesday morning trading, and Tesla's shares slid 19% intraday. Netflix, Amazon, Facebook, and Apple all opened at least 3% lower than their Friday closing prices.

Siegel added that investors in the broader market do not need to worry about the large moves downward in tech stocks.

"If you're in the S&P, I wouldn't worry. But if you have all your assets in those high fliers, I would be very careful right now," he said.

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