Apple and Google Should Continue to Perform in 2014
Technology stocks were market lagers during the first 9-months of the year but the 4th quarter has been a pleasant surprise for technology investors as large cap technology names played catch up football. The shorten holiday season likely helped stock that have a presence online that can assist in the process of finding gifts.
Google (NASDAQ:GOOG) is poised to see increasing activity this season, and should benefit from a Santa Claus rally.Apple (NASDAQ:AAPL) benefited from today’ announcement that a deal has been struck with China Mobile (NYSE:CHL) . Both stocks should enjoy a strong performance in 2014, but looking forward Google is poised to deliver outstanding financials in 2014 led by gross margins. The gross profit margin is a measurement of a company’s manufacturing and distribution efficiency during the production process. A company that boasts a higher gross profit margin than its competitors and industry is more efficient and therefore more profitable based on each unit of product produced. Investors tend to pay more for businesses that have higher efficiency ratings than their competitors, as these businesses should be able to make a decent profit.
Google’s stock price broke out to new all-time highs and is poised to continue to move higher, but today’s deal could give the edge to Apple. Momentum is very strong as the MACD generated a buy signal where the spread (the 12-day moving average minus the 26-day moving average) crossed above the 9-day moving average of the spread. The index moved from negative to positive territory confirming he buy signal. The RSI accelerated higher and reflects future positive price action for the stock.
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