Shares of Apple Inc. (NASDAQ:AAPL) have now pulled back by nearly 40% from September highs. Plenty of Foolish ink has been spilled documenting the Mac maker’s precipitous fall from Wall Street grace. At the same time, both the broader market and mobile rival Google Inc (NASDAQ:GOOG) have continued marching into uncharted territory and tapped all-time highs recently. Any investor that went long Google and short Apple in September would be sitting pretty right about now.
Among other reasons, institutional trading has played a large role in this switcheroo, as several large hedge funds were busy frantically unloading their shares last quarter. Meanwhile, the search giant has now surpassed the iPhone maker as the top holding among U.S. mutual funds and hedge funds.
Oracle Investment Research thinks the answer is “yes.” Chief market strategist Laurence Balter notes that all the conditions surrounding Google are eerily reminiscent of those for Apple Inc. (NASDAQ:AAPL) six months ago. At the time, analysts were clamoring to see who could assign the highest price target on Apple, with ongoing talk of $1,000 share prices and trillion-dollar market caps. Google is far from reaching a 13-digit valuation, but $1,000 seems just around the corner at this rate.