At one time,
was easily the most popular stock in the U.S. market. Nearly
every investor was watching or invested in the company, and it
didn't hurt that AAPL shares were surging as well.
However, the love for all-things Apple has died down lately as
shares of the computer giant have plunged. The once high-flyer is
now down 25% over the past year, erasing many memories of its
Thanks to this downfall, many investors have been looking for
the next glamour stock, a firm to take the mantle from AAPL and
captivate investors. While it has been a difficult search, some
believe that we have found that next hot stock in newcomer
Tesla Motors (
Tesla has burst onto the scene in the past year thanks to its
impressive looking cars, strong demand, and high-flying stock
price. In fact, TSLA shares have skyrocketed by more than 400% in
the past one year period, catapulting the company up the charts
and into a number of investor portfolios.
Many are looking for this run to continue too, and the
similarities between TSLA and AAPL are really starting to build.
Consider a few of the following that they both have in
- Stock price- Both experienced an incredible surge, pushing
them to the forefront of the investment news cycle in the
- CEO similarities- Elon Musk has been called 'the next Steve
Jobs' and the vision of both men is largely credited for the
rise of their respective firms.
- Product focus- Apple never focused on the low end consumer
during Jobs' heyday. The company zeroed in on 'aspirational
products' and this has largely been Tesla's goal as well.
- Second mover 'advantage'- Apple
didn't invent the mobile phone
and Tesla didn't invent the electric car. Both transformed
those products though and set a new standard in their
However, some investors aren't so sure, and believe that this
might be a company that isn't ready for prime time, or at least
not the next Apple. Some of these reasons include:
- Profitability- Is Tesla really going to make money? The
company is projected to post a loss this year, but is looking
to somehow turn it into a 50 cent a share profit for the
following year. This obviously is in huge contrast to Apple
which has been making piles of profits.
- Government help- Many argue that Tesla is only where it is
today thanks to the government. First the loans and now a
plethora of tax credits
which help to keep consumer costs of the cars down. Would TSLA
be in its current position without these subsides?
- Good Comparison- Can you really compare a company that has
sells roughly 5,000 cars in a quarter to one of the world's
most popular consumer products that sells more than 30 million
iPhones in a quarter?
- Given what has happened to Apple stock lately, is being the
next Apple even a good thing?
But what do you think? Is Tesla the next Apple stock, or is
the company just a flash in the pan?
Let us know in the comments section below!
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