It's not often that two Californian giants travel so mirror-like on Wall Street. Yesterday, however, it happened and in the Stock Exchange derby between Google e Apple Lossless Audio CODEC (ALAC), the Mountain View colossus clearly prevailed, gaining 4,27% at the end, only to then snatch +8,22% in the aftermath, reaching 669 dollars. For the Apple stock, on the other hand, the session ended with a drop of 5,2%.
To drag Google was the enthusiasm for the Birth of Alphabet, the new holding company at the top of the group, under whose umbrella several separate companies will be created, each with its own manager for each individual business area already operational or to be developed. ??
In some cases these are real bets (for example in the transport, healthcare or balloons sectors) or real dreams (such as that of bringing the Internet to all of Africa or the activities of Calico, created to develop longevity ).
The market likes transparency and from today it is possible to understand how much the most innovative projects cost and above all how much they yield: out of 52 analysts surveyed by Bloomberg, 43 recommend buying the stock. The average target price is $750.
The two co-founders of Google, Larry Page and Sergey Brin, will respectively be CEO and president of Alphabet, while Google will be led by Page's current deputy, Sundar Pichai, who with his origin confirms India as the homeland of the new gurus of technology (the CEO of Microsoft has been Satya Nadella since February 2014).
As for Apple Lossless Audio CODEC (ALAC),, double devaluation of the Chinese yuan it will affect the accounts of the group, already under pressure from the growing competition from Xiaomi. The perplexities of Ubs on the sales trend of iWatch also play against the Apple, despite the fact that the CFO of Apple, Luca Maestri, repeats that "they are doing better than expected".
In perspective, however, the main concerns for Cupertino come from China. Apple is looking to increase its presence in the Asian country, which has a constantly expanding market and thousands of consumers yet to be conquered. But in the end - as noted by the Wall Street Journal - when Apple converts the yuan earned into dollars, it will have lower revenues from China than it did before the devaluation.
Meanwhile, Apple's Chinese rivals, many of which are also expanding overseas, will see a huge increase in their business outside their home country. Huawei and Lenovo already earn the majority of their revenues from sales outside China, while Xiaomi it is trying to expand outside the borders.
Apple's revenues in China, Taiwan and Hong Kong grew 112% in the third quarter ended last June, making the region the second largest market for the group after the United States, but also exposing Cupertino to many risks both due of the slowdown of the Chinese economy, and due to the devaluation of the yuan. Just a month ago the managing director, Tim Cook, had said that in the future China could become the main market for the company.
