Have Investors Left Apple for Google?

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Oct. 18 (Bloomberg) –- Bloomberg’s Jon Erlichman reports on investors’ shift in sentiment from Apple to Google. He speaks with Stephanie Ruhle on Bloomberg Television’s “Market Makers.” (Source: Bloomberg)

Company.

We will head back to the west coast because -- the ceo of cowan and company.

Google broke a thousand dollars a share, something many thought apple was moving toward before the drastic downturn.

Jon erlichman is live in l.a. with a stock story of google versus the big apple.

What is behind the sentiment shift?

You think that a couple of years ago, google was a lot lower on the radar screen.

Everybody was talking about apple.

The must own stock for a lot of portfolio managers.

There was also a big question for google, actually a similar question to the one facebook was dealing with ahead of its ipo.

You build these big businesses, but they are businesses that bring a lot of advertising dollars tied to the traditional way of using a pc.

At a time when everybody starts to use their phones and tablets at a much bigger way.

By the way, apple was benefiting in a big way.

So, google has to go through massive transformation in moving the ad dollars to the new platform, and getting advertisers on board.

You're seeing the evidence in the results.

Not for gigi -- not to suggest they were absolutely blowout results but they were maintaining 20% revenue growth whereas in the case of apple you started to see a slowdown in growth, did red flags, concerns, and some investors saying, ok, time to move out of apple.

I made some money and i will move on.

You are talking about trading momentum but what about the companies?

What about market cap?

Apple is still a more valuable company.

It absolutely is.

I think some of it has to do with the sheer size of the sales pace.

If you are selling iphones, macs, ipods, 155 million ipads since conception it costs a lot of money for consumers to buy so it generates more money overall, more than google brings in.

Of course, if you are in the hardware business and you are not necessarily apple the margins lori has always been a tough one.

It is fascinating to see google making its push into hardware.

They bought motorola, a financial source but.

But i think the story will be, if the sentiment shift -- shifts back to apple it comes down to who's got the better growth profile and who is really in the better positioned to generate profit margins because both seem to be the catalyst the last couple of years between the two sides.

All of the big investors.

Magellan, discovery, george soros, they kind of have gotten

This text has been automatically generated. It may not be 100% accurate.

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