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.

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).

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.

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.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.