Colin Gillis, BGC's financial director of research and senior technology analyst, was a guest on CNBC's "Squawk On The Street" segment to offer his take.
He suggested that Apple has its "loyal" fanbase, and this won't change with Google's entrance to the high-end smartphone market. In fact, Google and Android dominate the global smartphone market with an 86 percent market share. The other 14 percent represents the high-end smartphone market and an area where Google and Android have less of a share.
Gillis added that Google isn't a threat to Apple right now, but it could be in a few years.
Ken Allen, T. Rowe Price's technology fund manager offered his take. He suggested that the specs on Google's phone are within the same "ballpark" as those of the iPhone, but Google holds a major advantage since it is a software company at its core.
Allen continued that Alphabet could win the battle given its massive computing capabilities, its massive reach with Search and its other apps.
Gillis agreed with Allen and added that Google's expertise in artificial intelligence isn't necessarily reflected in Alphabet's current stock price. He also added that Google's integration of its artificial intelligence software into hardware will be a "major driver" over the next five years.
What The Crowd Thinks
Who is Vetr's top pick among Alphabet and Apple?
Among the Vetr crowd, 48.6 percent of members rate Alphabet with a Buy rating, 25.7 percent rate the stock a Hold and the remaining 25.7 percent hold a bearish view. The crowd-sourced price target of $845.32 implies an upside just shy of 8.5 percent. Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!
By comparison, 39.1 percent of the Vetr crowd rate Apple with a Buy rating, 14 percent with a Hold rating and the remaining 46.9 percent rate Apple a Sell. The crowd sourced price target of $115.46 implies an upside of barely 2 percent.
Full ratings data available on Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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