Yahoo! Inc. (YHOO) and Apple Inc. (AAPL) Heading in Opposite Value Directions?

Yahoo! Inc. (NASDAQ:YHOO) and Apple Inc. (NASDAQ:AAPL) appear to be trending in opposite directions on the stock meter, yet that course could completely reverse in the future, at least for a short time. Greg Harmon, the CIO and Partner at Presidium Capital spoke to Benzinga about both companies, beginning with Yahoo! Inc. (NASDAQ:YHOO).

“It’s at some really key levels in terms of the monthly chart. If it can get back over and stay over $42.50, and hold up following this IPO, it’s got potential to move significantly higher. But all that is laid against the backdrop of, I guess the world, expecting the entire valuation of Yahoo was being buffeted just by the Alibaba stake so that it’s time to sell off,” Harmon said.

That abandonment of Yahoo! Inc. (NASDAQ:YHOO) was evident on Alibaba Group Holding Ltd (NYSE:BABA)’s IPO day, as it dropped by more than 2% despite becoming a vastly more valuable company at the same time. Investors in general decided to take their gains in the run-up to the IPO and get out of the stock, which as Harmon said, has only added to the perception that the stock has limited value beyond its Alibaba Group Holding Ltd (NYSE:BABA) stake. Yet in terms of value from assets alone, Yahoo! Inc. (NASDAQ:YHOO) is probably worth closer to $50.00.

In the case of Apple Inc. (NASDAQ:AAPL), while Harmon expects the stock to be strong, he did suggest there could be some pull-back to as far back as the $96.00 level, following the hoopla surrounding Apple Inc. (NASDAQ:AAPL)’s September 9 event and record-setting iPhone 6 launch driving it to near-record highs.

Harmon also raised a salient long-term concern with Apple Inc. (NASDAQ:AAPL) somewhat offhandedly, in that now that the iPhone 6 has delivered the larger screens that people were long clamoring for, what can they do for an encore with the iPhone 7 to create the same type of demand that the larger screens have created for this generation?

Apple Inc. (NASDAQ:AAPL) is down 0.75% in early morning trading, to $101.90, while Yahoo! Inc. (NASDAQ:YHOO) is up nearly 2% to $39.79.

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