Monday, March 11, 2013

Google Inc (GOOG) Overtakes Apple Inc. (AAPL) As Top Mutual Fund Stock

Google Inc (NASDAQ:GOOG), the world’s largest search engine has become the world’s most ownedstock by the 50 biggest actively managed U.S. mutual funds, leaving behind Apple Inc. (NASDAQ:AAPL), according to Citigroup as first reorted by ValueWalk last week. Among hedge funds also Google was at the top as per the report, which takes into account and examines the investment at the end of the fourth Quarter for the largest funds by asset size.
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The stocks of Google Inc (NASDAQ:GOOG) are now trading at about 25 times profit, compared with a price to earnings ratio of less than 10 for Apple Inc. (NASDAQ:AAPL), as per the data consolidated by Bloomberg. This is the utmost difference since June 2005, after the two years of competition between the companies in mobile devices, which began to grow fiercer.
In the guidance of Chief Executive Larry Page, Google has become the most dominant engine for web search, which surged its market shares to 67 percent, and in Smartphone market it holds 70 percent of the market.
Apple Inc. (NASDAQ:AAPL), on the other hand, is experiencing a sluggish revenue growth and declining margins along with fierce competition given by Samsung Electronics in Smartphone category and other users of Google’s Android operating system.
Apple after the death of Co-founder Steve Jobs is working on releasing new products that can continue the success story of the iPod music player, the iPhone Smartphone and the iPhone tablet computer, which came as a revolution in their respective categories. Investors are waiting to see whether Apple Inc. (NASDAQ:AAPL) can open new avenues for revenue, potentially with a watch-like   device or the ever-rumoured Apple   TV.
On the other hand, Google Inc (NASDAQ:GOOG) is currently sailing through more possibilities of growth not only in Internet search, where it has staggering 67 percent market share, but also in the smartphone software with its Android Operating system. Android contributes in the revenue of the Google through search engine traffic, ads and app royalties.
After hitting low in mid-January around $695, Google Inc (NASDAQ:GOOG) is up about 20 percent. Last week, the closing came at $831.52. The Stock also had a run of 13 green weeks out of 16 since early November 2012. Google, for the six consecutive weeks, closed at a new all-time weekly high. The analysts are predicting Google at $1000 per share.
Contrary to Google Inc (NASDAQ:GOOG), Apple Inc. (NASDAQ:AAPL) hit yet another 52 week low on last week at $419 but gained slightly as the major indices increased.

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