Keeping it light on Friday, I wanted to get all of your input regarding two of the perhaps the most popular companies trading today.
I have been a fan of Google for a very long time and use just about every opportunity I can to reiterate my love for Google (HERE’s an old clip from Fox in 2012, my comments are towards the end, but cut off) and my doubts with Apple.
In January of this year, I wrote a fun little piece here in Real Time Insight about the possibility of Google overtaking Apple as king of the market-cap jungle.
Back then, Google was trading around $700 per share, with Apple around $550.
With Google close to $1,000 per share and Apple struggling to stay about $400, my earlier thesis is looking a little more realistic.
Which do you want to buy?
Google is constantly evolving and has multiple manufacturers like Samsung and HTC releasing cutting edge android phones that run the #1 selling platform in the world, Android (Samsung just released the S4). Google goggles, updated mapping technology, a new mobile operating system upgrade and more are cutting edge developments are coming through the pipeline.
What has Apple done lately? The iPhone and its software have been slightly improved, but nothing earth shattering. They gave us a smaller version of the iPad (yippie) and most of their product lineup has remained relatively unchanged for a while other than minor tweaks. Oh, I almost forgot that they did take out a loan to pay a dividend…
While Apple is only trading at 11 times forward earnings, I believe that they are still priced as a game changer. The problem is that I don’t see that happening in the near future unless they roll out a time machine. I feel like they are going to become the Microsoft of the decade (it happened before) and their stock is going to stagnate at best, but most likely move lower.
Google trades at double the multiple (22), but I believe that the company is not only innovating everyday and wrapping themselves around multiple streams of income, but is on the precipice of becoming the world’s most powerful mobile social platform, aggregating all the social feeds and delivering a clean user interface that both consumers and advertisers will be content with. I am still a buyer of their stock.
Tell us your thoughts:
a. Buy Google, Sell Apple
b. Buy Apple, Sell Google
c. Buy them Both
d. Sell them both
e. Other (please explain)
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