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Apple Vs. Google: Game On

By Nicholas SantiagoStock MarketsSep 09, 2012 01:46AM ET
www.investing.com/analysis/analysis/apple-vs%2520-google%253A-game-on--135658?
Apple Vs. Google: Game On
By Nicholas Santiago   |  Sep 09, 2012 01:46AM ET
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The next great heavyweight prize fight is here. This time it is not Muhammad Ali vs. George Frazier, it is the tech heavyweight Apple Inc (NASDAQ:AAPL) against internet giant Google Inc (NASDAQ:GOOG). This face off should not be billed as the 'Thriller in Manilla' it should be billed as the Battle for Silicon Valley. These two massive technology companies are now direct competitors in many areas of the market and the battle is growing.

Apple Inc recently announced that they will leave the popular Youtube.com application out of the new iPhone 5. This is really the beginning of Apple Inc drawing first blood. They are now making it known that they are viewing Google Inc as a direct competitor. Apple Inc has already conquered companies such as Research In Motion LTD (NASDAQ:RIMM), and Nokia Corp (NYSE:NOK). These two cell phone makers are now almost extinct due to the Apple i-Phone and Google Inc Android smart phone successes.

Apple Inc has a huge following and is growing in popularity everyday, this cannot be disputed. On the other hand, Google dominates internet search and the Android operating system is also extremely popular. The Google dominance over the internet cannot be argued right now, and this is going to be a huge factor for them in the future when it comes to growth and revenue.

Friday, Apple also said that they would be entering the internet radio business. This news sent the stock of Pandora Media Inc (NYSE:P) lower by 18.0 percent. Will they become another victim to the Apple success formula to reinvent a business? Many people can make a case that Apple Inc single handedly ruined the stock price of the one time dominant Sony Corp (NYSE:SNE). It is safe to say when Apple Inc enters a business it does not taking any prisoners.

There is certainly room at the top for Google and Apple at this time. The demand and growth appetite is still there for both technology giants, however at some point they will begin to eat each other's lunch. Friday, Google Inc stock was trading higher by $9.11 to $708.51 a share. The stock is nearing short term overbought levels on the charts so a pullback cannot be ruled out over the coming week. The up-trend for Google stocks is still firmly intact and the stock could test its all-time high at some point in the future which is $747.00 a share last made in 2007.

Apple Inc stock was trading higher Friday by $3.35 to $679.63 a share. This stock continues to grind higher nearly every trading session. It is undoubtedly the most loved stock by the investing public which could be a little bit of a warning sign. The stock has also moved higher on light volume which could be problematic in the future. Despite those small negatives the stock remains in a confirmed uptrend by trading above all of the major daily chart moving averages.

Is there room for these two technology heavyweights? Who will be the dominant company over the coming year? Here is the way I view it: Do these stocks give us a chance to trade them and make money? The answer is yes, and they will for years to come whether they rise or decline.

Follow the charts and trade them accordingly.

APPL &  GOOG
APPL & GOOG

Apple Vs. Google: Game On
 

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Apple Vs. Google: Game On

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