The internet has changed the way that we communicate. That being said, the ways in which businesses market to their consumers have changed as well. Success now relies upon innovation. That which spreads across the cyber void quicker, that which responds quicker, that which provides the latest trends and Ink Technologies, is the most popular among the most common users.
Google and Apple have been in somewhat of an innovation war as of late, denoting a growing war in popularity. One question remains, however. Does Google have what it takes to beat out Apple in another popularity contest? On May 7th, 2013, Google’s net worth rested at approximately $300B, while Apple’s stock was worth nearly that, plus a healthy third. At approximately $408B in net worth, Apple would seem to have the upper hand. Maybe not. According Yahoo!, the world’s most loved homepage, by May 7th of this year, Google had witnessed a 28% return on the year, while Apple was down 18%. That week, Apple lost 4% of its net worth. Google earned 4% of its own.
Both headquartered in San Francisco, a mere ten miles away from each other, Google and Apple seem to be in a war of the worlds. The irony is that neither tech-giant’s secret weapon is particularly otherworldly, or futuristic for that matter. Both have run into periods where they either fly off the shelf, or they sit there collecting dust. Apple has the iPhone. Google has the Android.
Presently, Google’s stock would need to sit at approximately $1,200 per share to fall even with Apple. While Apple is doing everything in its power to make sure that doesn’t happen, Chief Market Technician at FBN Securities, J.C. O’ Hara, believes that Google just may have what it takes to at least rival Apple’s standing as a dynasty.
Over the last five years, Google has shown enormous potential. O’Hara believes that the company is just now beginning to realize its worth, and that despite it’s degree of popularity as of late, the corporation is really still in its infancy from an investor’s standpoint. As more investors view the forecast models, they may begin to realize that Google, albeit a fundamentally platform-based company, will eventually find all roads leading to it. O’Hara estimates that the company’s eventual net worth may lie somewhere in the range of anywhere from $985 to $1,000 per share. That being said is there any chance that Google’s net worth will max out well before that mark or that Apple will fall to meet it? CNBC contributor and Technical Strategist at the Seaport Group, Abigail Doolittle, believes that the former is more likely.
“The nice, long-term uptrend is really driven by strong revenue growth,” Doolittle explains. “The breakout over this ascending triangle is true investor enthusiasm about this company being a king of innovation.”
Doolittle has examined some forecast models herself. She believes that Google has experienced too much growth to match growth analysts’ projections for 2013, and that Google will fall in line with those estimates, leaving the company value hovering around $800 per share.
Another area of concern for Apple is their number of app downloads when held against the Android. According to The New Yorker Online, Apple brings down two billion application downloads monthly. Android apps are now closing the gap with two billion five hundred thousand downloads monthly. At this rate, Google app downloads will outdrive those of Apple by October of this year. This cannot be attributed solely to user preference. Google recently added some new features and new offerings to its Google Play app store. This might not have tipped the scales so drastically if more people had more Apple products. According to Asymco, a mobile-consulting firm, approximately three Android products exist to every two Apple products worldwide.
Apple and Google have two different personalities when it comes to releasing products. Apple has been revered for its steadfast approach to releasing products without flaw. They are a non-experimental company that will work out any and all kinks before releasing their products to the public. This is a quality that most Apple users find impressive. iPhones 3, 4 and 5 all came off the line with pristine image quality, among other things. Each subsequent release was an addition to the previous, not a correction thereof. Many Apple users would agree that thus far, this important measure has kept Apple ahead by a nose. On the other hand, it would seem that Apple’s obsession with perfection has held it back, and some estimate that it will be Apple’s downfall. With Android devices already outnumbering Apple devices 3 to 2, Google’s experimental nature has afforded it the opportunity to release more products more frequently, and to use feedback from its consumers to keep doing so with fewer and fewer complaints as releases continue.