Apple (AAPL), Microsoft (MSFT) - which is better to buy right now - Apple or Microsoft?

When the S&P 500 hit a new record high close for the second day in a row on Thursday, CNBC’s Trading Nation asked two traders which of the two largest S&P 500 stocks were better to buy: Microsoft Corporation (NASDAQ: MSFT) or Apple Inc. (NASDAQ: AAPL)?

What happened: Gina Sanchez, CEO of Chantico Global and chief market strategist at Lido Advisors, said the answer depends on whether investors value the resumption of trading and catch-up or they value long-term growth.

Sanchez noted that if the reopening deal is assessed, Apple suffered the most in the past year as people chose not to upgrade their phones or computers. However, expectations for 2021 as well as 2022 are very strong and Apple is catching up very well with trade.

Microsoft, on the other hand, has a very long track record of growth, and the post-pandemic expectations are even greater than before the pandemic, Sanchez said. During the pandemic, the company continued to grow its Azure Suite and Stack.

Based on sheer valuation, Sanchez said Microsoft doesn’t actually trade at the premium that Apple does. While Apple is absolutely cheaper, Microsoft is actually cheaper compared to its own history, she said.

JC O’Hara, chief marketing technician at MKM Partners, said Microsoft is clearly a stronger chart and its stock has already broken above February highs and hit record highs.

However, he believes that Apple might be the best deal to buy right now, as the deal he is looking at is a catch-up deal. He predicted that Apple is going to test its February highs.

O’Hara said that just as Microsoft began to push its way to new heights last week, Apple will soon do the same.

See Also: 3 Lagging FAANG Shares Awaiting Return To Highs

Why is it important: Microsoft shares hit a record high for the second straight day on Thursday, while Apple stock did not hit a new high since hitting a new 52-week high on January 25 and has even dropped 10% since then.

Apple has a market cap of $ 2.18 trillion, while Microsoft has a market cap of $ 1.91 trillion. Apple’s annualized return is minus 3.5%, while Microsoft has returned 12.6% YTD gain.

Price Action: Apple shares closed 1.9% higher on Thursday at $ 130.36 and rose nearly 0.4% after the close of trading. Microsoft shares closed 1.3% higher on Thursday at $ 253.25 and rose nearly 0.3% further after the close of trading.

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