Best Stock to Buy Now: Alphabet or Apple?

Core Viewpoint - The analysis suggests that between Apple and Alphabet, Alphabet is currently the better investment option due to its stronger growth and more favorable valuation [2][12][14]. Company Overview - Apple and Alphabet are two of the largest companies globally, ranking third and fourth by market capitalization, making it challenging for either to deliver market-crushing returns [1]. - Both companies aim to maintain their current market positions while seeking opportunities for expansion [4][7]. Financial Performance - Apple's growth has been stagnant until Q3 FY2025, where it reported a 10% revenue growth and 12% diluted EPS growth [8]. - In contrast, Alphabet has consistently outperformed Apple, with a 14% revenue increase and a 22% diluted EPS growth in Q2 [9]. - Alphabet's growth is bolstered by its divisions like Google Cloud and Waymo, which provide significant growth potential that Apple lacks [12]. Valuation Comparison - Alphabet's stock is currently cheaper than Apple's, despite Alphabet's faster growth [12][14]. - A significant gap in price-to-earnings (P/E) ratios has emerged since mid-2024, with Alphabet returning to its usual valuation range while Apple's stock has become more expensive [14].