The three major bellwethers in tech, Microsoft, Google, and Apple, some would even include Amazon, pull and push the trends in the tech industry. They dominate in the software on the web, the software on the client machines, the mobile devices, and even the servers that serve all this content. Since last October, we had the unfortunate loss of Steve Jobs, the mecca in revolutionizing technology. And we have also seen a huge shift in the confidence of the markets, especially where it is safe to park your cash, for all of those big wigs out there in the financial industry.
Let’s not play any games here, Apple is on a downward tear, since the loss of Jobs. I would be as bold as stating that Apple’s stock is not declining because of their services and products, but because of the confidence in their leadership, and the security of their shareholders. Even today, Microsoft is considered a parking lot, to hold your cash. Financial 101 for massive scale investors, always stay invested in something. And Microsoft is that someone.
But with the emergence of Apple over the 2000 to 2010 time period, many have been leaving the MSFT parking lot and heading over to the AAPL parking lot. What do you do with all this cash, you park it in several places. With the uncertainty of Apple now, it seems that the new parking lot exists at GOOG. Look at the graph above, there is quite an astonishing relationship between Apple and Google’s stock. It it because of profit, product lines, or performance? Many will speculate that Yes, that is the reason. But I would go as far as to state that as people once used the MSFT parking lot, who then moved into the AAPL lot, there is a new direction to the GOOG lot.
10 year duration possibly? Should you hop on now? I cannot answer those questions, this is a tech blog, not a stock one.