• Apple, again becomes world’s most valuable company



    Alphabet’s time at the top was short-lived as Apple becomes the world's most valuable company again. A few days ago Alphabet (Google) became the worlds most valuable company, you can check out that link on ModMyi.

    Two days later, however, Alphabet’s stock has fallen back down, giving the crown of the world’s most valuable company back to Apple. The drop today can be attributed to an overall rough day for the tech sector. Tesla, Yahoo, Netflix, Amazon, and Alphabet all closed down compared to their previous day’s performance.

    “That didn’t take long, One day after Google parent Alphabet passed Apple to become the world’s most valuable public company, Apple regained the crown Wednesday.”
    - Ari Levy reports for CNBC.

    The long GOOGL short AAPL trade has been a popular paired trade among some hedge funds in recent years. If you look at a 5-year chart comparing the two stocks you’ll notice that the two stocks are often moving in different directions as the trade gets wound up or unwinds and reverses.

    Momentum, not fundamentals, is the main force behind Google’s recent surge past Apple in terms of market cap. There’s a good chance that the trade will unwind now that this psychological milestone has occurred. Nothing is guaranteed in the market in the short term. Long term, buying Apple, with it’s 10% return (P/E of 10) makes more sense than buying google’s 3% (P/E of 30) with growth rates being far from certain for either company.

    ModMyi don't think that it will be the last time we will see these two tech giants pass each other from time to time and we think that they both will battle for the “world’s most valuable company,”.
    This article was originally published in forum thread: Apple, again becomes world’s most valuable company started by Caiden Spencer View original post
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