Google and Apple are two technology companies that most (including yours truly) constantly obsess about. From minor software upgrades to new half-baked betas, dozens of websites, hundreds of blogs and mainstream media report on Google and Apple. Whether that is a good thing or not, who knows. (I have argued before that if start-ups focus on Apple, they are likely to get more buzz, and early adopter adoption.)
It was fun to note that obsession amongst enthusiasts is reflected in the stock prices of the two companies. Cowen & Company’s technology strategist, and our good buddy, Arnie Berman in his Technology Focus reports points out the convergence between the Google and Apple stocks.
Considering that Google’s and Apple’s businesses have almost nothing in common, the correlation in the prices of the stocks has been remarkable. But as hot growth stories with seemingly unstoppable financial momentum and business models levered to the emergence of the “digital consumer”, the stocks became connected in the minds of many investors.
Interestingly, the two stocks have been heading down for most of 2006. Since the second quarter, there has been increased divergence between Apple and Google.
Hey maybe people are quite worried about the rumored iPod killer from Microsoft? I wonder if this disconnect is permanent or will it be business as usual in a few months, especially after the Apple’s Developer Conference. Any thoughts?