This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Google vs. Apple: A Tale of Two Companies

NEW YORK ( TheStreet) -- Google (GOOG) and Apple (AAPL - Get Report) have become polar opposites as of late, as Google's share price hits $800 for the first time, and Apple's freefall continues.

Shares of the Internet search giant surpassed $800 in early Tuesday trading, amidst positive sentiment, reaching a high of $804 before pulling back slightly. Google, led by CEO Larry Page, can seemingly do no wrong now. That was the prevailing sentiment surrounding Apple for much of the last few years, but that's changed over the past three months.

Shares of Google are up 20% over the past three months, whereas Apple's down 19%.

GOOG Chart GOOG data by YCharts

Google's fourth-quarter results showed that cost-per-click (CPC), a key metric for ads, fell 6% year-over-year, but actually rose 2% sequentially, alleviating some of Wall Street's biggest concerns. Despite a top line revenue miss, Wall Street reacted positively, sending shares higher.

Apple, on the other hand, was punished for its recent revenue miss. This comes even though Apple reported 17.6% annual revenue growth, or 27% when factoring in that last year had an extra week to account for the leap year.

Google is becoming more like Apple, especially as it branches outside of its key advertising model into other areas. Rumors of Google-branded retail stores, an area where Apple has enjoyed great success, are making the rounds this morning.

In addition to potential retail stores, Google is making its own hardware. The Nexus 4 smartphone, as well as the Nexus 7 and Nexus 10 tablets have sold well, but nowhere near Apple's iPhone success. Apple, of course, has been selling hardware for years, first with the iPod, then the iPhone, and now the iPad.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $132.65 0.00%
GOOG $555.37 0.00%
TSLA $231.55 6.01%
FB $81.91 0.00%
YHOO $44.36 0.00%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs