This Investor Just Sold Apple Stock To Buy Microsoft: Here's Why

Zinger Key Points
  • Karen Firestone sees better downside protection in Microsoft and more upside opportunity.
  • She says Microsoft's strength is its focus on enterprise software, cloud storage and gaming.

Apple Inc AAPL shares have held up well relative to most of the market as the Federal Reserve continues to fight runaway inflation. 

That's partly why Aureus Asset Management's Karen Firestone decided to trim her exposure to the Cupertino-based company. 

"Apple is selling at a 30% premium to the market," Firestone said Wednesday on CNBC's "Fast Money Halftime Report."

She also decided to pare back her Apple exposure because of the nature of its business.

"It's a consumer-based stock, remember, and the consumer is where there can be weakness," she said, adding that said weakness could be seen in Target Corp's TGT earnings release

Moreover, Firestone sees more upside opportunity and better downside protection in Microsoft Corp MSFT stock, she said: "Microsoft, we think, is more resilient to a recession."

See Also: Here's How Much $100 Invested In Microsoft 20 Years Ago Would Be Worth Today

She told CNBC that Microsoft's focus on enterprise software, cloud storage and gaming should help the company weather any further downturns in the market. 

"While we don't know where the bottom is, we know we are oversold in many cases," Firestone said, suggesting Microsoft is one of the names in which the selling is overdone.

AAPL, MSFT Price Action: At time of publication, Apple was down 0.10% at $140.13, while Microsoft was up 1.09% at $262.45, according to Benzinga Pro.

Photos: courtesy of Apple & Microsoft.

Posted In: CNBCKaren FirestoneLong IdeasTrading Ideas