Alphabet Wins Big Or Apple Loses
- Apple trades at a premium valuation in the tech sector, but Alphabet is forecasted to far exceed the growth rates of Apple.
- Alphabet has the potential to out-innovate Apple in the key AV and AR/VR device segments, where Apple has the bigger hype.
- Due to innovation dynamics, growth, and valuation, Alphabet is poised to rally in a bull market while Apple could collapse in further market weakness rewarding a short position.
- The pair trade pays off because the opposite investment should remain flat in both scenarios.
- This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »
One of the better pair trades to execute right now is going long Alphabet () () and short Apple (). Both companies fall into the FAANG group ofvery Bullishshorting Apple
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