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Battle of the $2T giants: is Apple or Microsoft the better stock to buy

Battle of the $2T giants: is Apple or Microsoft the better stock to buy
Wajeeh Khan
Jun 24, 2021, 15:00 PM
  • Microsoft Corp becomes the world's second $2 trillion company.
  • Traders choose between AAPL and MSFT on CNBC's "Trading Nation".
  • Apple Inc is currently about 8% down compared to its record high.

Microsoft Corp (NASDAQ: MSFT) joined rival Apple Inc (NASDAQ: AAPL) in the $2 trillion club earlier this week, fuelling the debate on which of the two stocks is more attractive for investors at the moment.

Quint Tatro’s comments on CNBC’s “Trading Nation”

It’s a hard pick for sure. While the President of Joule Financial, Quint Tatro, also agrees, he sees one of the two more suitable for investment and the other for trade. On CNBC’s “Trading Nation”, Tatro said:

Currently exchanging hands at 32 times forward earnings, Microsoft is likely to disclose an annualised growth of 16% in full-year sales. Its per-share profit for the year to June is expected to come in at $7.77 versus last year’s $5.76.

Apple and Netflix are the only two FAANG stocks at the moment that haven’t printed a new high since January. Compared to its record, AAPL is currently about 8% down.

MKM’s O’Hara sees more potential in Apple

During the same interview with CNBC, MKM Partners’ J.C. O’Hara also expressed confidence that MSFT was likely to remain resilient in the upcoming months after hitting a record high on Wednesday. Quoting the rising 200-day MA and the broader technical setup, O’Hara said that “the short-term momentum favoured Microsoft.”

On the other hand, the MKM expert said that after the pullback in Apple Inc, the stock might be set to outperform the technology sector as well as the broader market.

Apple is down about 1% on the intraday chart.