Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Apple Inc. (AAPL), Alibaba Group Holding Ltd (BABA) Growth Showdown: Michael Murphy Vs Jon Najarian

To Apple Inc. (NASDAQ:AAPL), or not to Apple, or in other words to invest in Alibaba Group Holding Ltd (NYSE:BABA) instead, is a big question for hedge funds and other investors as they position their portfolios to take advantage of the better growth story that is being sold on the stock market. The topic was debated on CNBC between Micheal Murphy and Jon Najarian, among others.

Most Valuable Brands In China

“The reason why I would pick Apple Inc. (NASDAQ:AAPL),  is that Alibaba Group Holding Ltd (NYSE:BABA) already has 80% of the China market so I see more growth for Apple, I see a better cash position for Apple, and also Baba has only been a public company for a couple of months now. We know the Apple story, we know how they have been able to operate for so long, so to me it kind of tips the scale in a big way in Apple’s favour,” said Murphy.

The action on the stock market today is reflective of a similar trend. Apple Inc. (NASDAQ:AAPL) is up about 1.24% and is trading at $115.4 whereas Alibaba Group Holding Ltd (NYSE:BABA) is currently down about 2.5%, and trading at $111.4. However, investors know better than to let short term trends dictate their investment choices.

Joshua Brown, another CNBC contributor who was participating in the debate went with both companies. That goes on to say that the choice presented is not an easy one. However, as Murphy pointed out, a proven track record of operating for several years in the industry cannot be overlooked. Alibaba Group Holding Ltd (NYSE:BABA)’s chances of operating profitably outside China are still very uncertain, given that it will not enjoy the support from the government apparatus that it does in its home country.

Apple Inc. (NASDAQ:AAPL) has a team of innovators that has not only delivered on what people expect its products to be, but have also contributed to raising those expectations. Alibaba Group Holding Ltd (NYSE:BABA) on the other hand, does not have an R&D department that could match this. The company has recently been making acquisitions in silicon valley with the equity that it raised, but it remains to be seen whether they will work out for the e-commerce giant in the long run.

Video Embed Size: 530 X 298 640 X 360

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.