Apple vs Google: When Google Inc (NASDAQ:GOOG) stock jumped over the $800 price earlier this week, it got many people talking. In fact, it led to Bernstein upping its price target to $1,000. While the search engine giant is on the rise, it doesn’t mean that people should be ignoring Apple Inc. (NASDAQ:AAPL). Sure, the Cupertino-based company has hit a rough patch in terms of its stock price, but this is no reason to give it the cold shoulder.
This is exactly what Seema Mody, CNBC Business News correspondent, discussed in a video posted earlier today.
When asked about the “big tech war” between Google Inc (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL), here is what Mody had to say:
“There is a technical and fundamental story really at play here. If you take a look at the three month chart of the two stocks, there is almost a perfect symmetric divergence between Google and Apple.
Later in the video, Mody went on to take a closer look at the net income and cash flow of the two tech giants. Here is what she said:
“Apple’s net income and cash flow from operations is roughly four times higher than Google. But when looking at its forward looking price to earnings ratio, thanks to the sharp drop in Apple shares, it is trading at 10x while Google is trading at 17. Keep in mind that the average P/E for stocks on the S&P tech sector is around 15.”
So, what does all of this mean? Mody does a good job summing up where Google stands:
“To sum it all up, Morningstar says Google has a great top line growth story going forward.”
What are your thoughts on what Mody had to say about Google Inc (NASDAQ:GOOG) and Apple Inc. (NASDAQ:AAPL)? Right now, as far as the stock price of the two companies is concerned, things are looking up for Google while Apple looks to regain its footing.
Check back here for more updates on Apple vs Google.
DISCLOSURE: I have no positions in any stock mentioned.
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