Apple vs Google Stock: Which Is Best?

Apple vs Google Stock: Some rivalries in this world are epic: Apple [NASDAQ: AAPL] versus Alphabet Inc [NASDAQ:GOOG] is one of those matchups that draws a lot of passionate fans and arguments on both sides of the fence.

Android versus iOS, Siri versus Google Assistant, Play Store versus App Store. These companies compete on many fronts – although they teamed up to track covid-19 cases using their mobile devices.

Both giant tech companies were among the first companies to transition to work-from-home to support social distancing.

Apple employees are working on top-secret projects from the new HomePod to Apple TV, iMac, and more from home. Google is working on funding more virtual work across the globe, as it continues supporting a wide range of updates to Chrome, Chrome OS, Google Search, and more.

Which of these tech companies should you invest in though?

Is Apple A Better Stock To Buy Than Google?

We explore the Google/Apple rivalry to determine who should come out on top in 2020 and beyond.

Obviously, we can’t predict the future, but we are providing the most updated research on each company’s accomplishments so far, along with their respective development roadmaps. First, we’re going to address the question of why you should consider either one of these tech giants.

For simplicity, we’ll refer to the entire Alphabet parent company as “Google,” since it’s all one investment. YouTube, DeepMind, etc., may technically be different subsidiaries, but they all affect the overall GOOGL and GOOG share prices. Let’s get started.

Apple vs Google Stock: Pros and Cons

Both Apple and Google have one major con, and we’re going to discuss that right up front.

Personal privacy and data tracking has long been on the mind of the general public. One side effect of the Covid-19 novel coronavirus pandemic is that it highlighted how much we’re truly being tracked. Offering to track this epidemic on a global scale has gained the ire of privacy advocates across the board.

Ever since Edward Snowden’s unprecedented leak of secret NSA spy programs in the early 2010s, it’s been a hot-button issue. Apple went out of its way in 2016 to portray itself as the hero when the FBI demanded it unencrypt an iPhone to help in the investigation of the San Bernardino terrorist shooting. The sudden turnaround during Covid-19 is a stark contrast to this stance.

Whether Apple or Google is a good buy depends on each company’s ability to maintain the spotlight on Facebook and Zoom as mascots for user privacy violations. If they become villains, other competitors may rise, including even Huawei, which has been forced to create its own ecosystem after being banned from Android development for the exact same privacy concerns.

If you believe the world will forgive Apple and Google for the same crimes committed by Huawei, then read on for a breakdown of each individual investment.

Is Google Stock a Buy?

At its 2020 lows, Google’s stock fell 33.8% from its all-time highs. It has since recovered from the drop but is still down double digits from its high. That leaves opportunity for a lot of gains for investors who want to capitalize on the discount.

If you’re curious whether the company can withstand the effects of a long-term shutdown, not only is it working virtually, but it had nearly $120 billion cash on hand per its last quarterly report.

Making things even sweeter, the company has $152.5 billion in total assets and a ton of cash, particularly when compared to its liabilities.

No matter what happens in the future, it’s probably a safe bet that Google will find a way to weather the storm. It also still has investments in everything from blockchain to artificial intelligence, cloud, self-driving cars, and more.

Not only that, but Google’s family are among the main companies that people are relying on during the pandemic. We get our news from googling and YouTube, and increased traffic is making up for lost revenue.

Companies are spending less on advertisements across the board, and that will inevitably hit Google, but it can survive. So, how will Apple fare?

Should You Invest in Apple Stock?

Like Google, Apple has taken a massive hit, culling 31% from its mid-February highs during the novel coronavirus pandemic.

It has since recovered about a portion of that loss, but still has an uphill climb for the rest of the year. However, Apple is also holding onto a huge stockpile of cash, with close to $100 billion in its coffers. The company joined the trillion-dollar club for a reason.

Apple also has plenty of development coming up for the 2020 holiday season. Its Apple Watch, AirPods, and Beats wearables are selling like hotcakes as people adjust to the close confines of their homes in this new normal.

These are just a few of the Apple devices that are deemed essential by consumers, regardless of whether local municipalities agree with leaving the company’s flagship retail stores open.

Not only that, but services revenue, including Apple TV+, created a 17% increase in revenue during the first quarter of 2020. This revenue also includes iCloud, AppleCare, licensing, App Store sales/subscriptions, and more.

Stalling in the tech supply chain on the hardware side won’t hamper Apple’s ability to rely on software-side service sales. That brings us to the question of which of these two stocks to choose.

Google Vs Apple Stock: The Bottom Line

Ultimately, the choice between Google and Apple is a personal one that’s up to you. Apple holds approximately 40% of the mobile market, while Google heads 90% of all internet search traffic. Each has its dedicated fanbases, and you likely already made a choice between the two when you purchased your mobile phone.

If you’re already in an Apple or Android household, trust your instincts and invest in what you know. At the end of the day, each company’s value is based on consumer interest in their products, and by using their products, you maintain an inside lane into how their development is going.

If you had to pull the trigger on just one stock in a post coronavirus world, Google monetizes without you having to spend $1,000 on a device every few years and so may be the better bet. After all, Apple’s products are nice to have but don’t have to be bought every year whereas Google is likely a service you use daily in some form or other, whether Gmail, Search or YouTube.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.