How Apple is Affecting Alphabet?
The strategy to open long positions for Google and short positions for Apple stocks may become a balanced hedge opportunity in times of economic downturn. Apple stock prices were expected to benefit from the development of VR and Apple car segments, but there are no details on the progress on Apple cars so far. It is not even clear if Apple will create these cars on its own or if it will cooperate with third-party car manufacturers.
Alphabet, a Google parent company, has already been testing self-driving vehicles in San Francisco, and is cooperating with Uber Freight to facilitate highway unmanned cargo transports. More than a half of the 4.1 million miles travelled by self-driving vehicles in the United States last year were made by Alphabet vehicles. Apple self-driven car prototypes may not appear before 2024.
Google Glasses are created with technology that was bought together with Focal startup in 2020. Together with Google cloud, Youtube and Waymo, an autonomous driving technology development company, and also a subsidiary of Alphabet, revenues are expected to grow fast over the coming years. The revenues of Alphabet are expected to add 19% in 2023 vs 6.5% by Apple, in 2024 they are planned to grow by 13.8% and 5.5% respectively. In other words, revenues of Alphabet are expected to grow three times more than Apple, while their P/E ratio in 2022 is expected at 14 and 20 respectively.
The mid-term target price for GOOGL shares is at $2,700.