Friday, March 22, 2013

Google Set to Trample Apple

Google vs Apple
The competition between Google and Apple has taken some dramatic development lately. Tech business news just reported that the former has retaken the role of superstar of the tech sector with a stunning stock rally as rival Apple flounders.

Google just hit fresh all-time highs in recent weeks, and closed on 8 March 2013 at US$ 831.52, capping a nearly tenfold rise from its public offering price in 2004 of US$ 85. The stock is up about 17 per cent so far in 2013.

Many experts attribute this dramatic rise to an increase consumption of Google's Android mobile operating system, at the expense of Apple. Android is free but gives Google the opportunity to deliver more services and ads to users.

"The negativity that is surrounding Apple at the moment is giving positivity to Google," said Gartner analyst Carolina Milanesi.

Apple, which traded as high as US$ 700 last year, has slumped more than 35 per cent and ended last 8 March at US$ 431.67.

For Google, "there's a lot going forward at the moment", Milanesi said, noting that the company is successfully "getting consumers into their ecosystem".

Google now appears poised to beat Apple to the symbolic level of a US$ 1,000 share price, say some analysts.

Analysts at Jefferies said Google set a price target for Google at US$ 1,000, saying it has been benefiting from a wide range of services beyond its traditional web search ads, including shopping and mobile ads.

"Google looks well positioned for growth with the number one market share in large, rapidly growing markets," said Jefferies analyst Peter Misek, who noted that Google remains the top Internet search engine and leading advertising platform.

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