Why is Google, the Wall Street's darling... and not Apple?

Like many technology and in particular Apple enthusiasts, I have wondered in the last few years, why Apple is being treated indifferently but the Stock Market. While I do not profess any knowledge in how the Stock Market works, as a person who has been following Apple for almost a decade now, and being an Engineer with a Ph.D. in my field, I am reasonable equipped to interpret all signs that the Stock Market uses to appraise or downgrade a company. 

ASP of smartphones (Source - IDC via AppleInsider)

ASP of smartphones (Source - IDC via AppleInsider)

In general, Apple has being doing great as a company in terms of pure revenue, profits, growth, etc. But somehow ever since Steve Jobs passed away, the company seems to be facing a double standard in terms of the Market's perception of it. Consider this, while Google who has not been doing anything (Oh common, don't mention Google Glass or the stupid humanoid robots!) significant over the last few years, Apple has been making incremental improvements to its already supreme products, like they always do. Apple's numbers are staggering in comparison to Google, who make money through Ads.

Anytime I raise a question to anyone who is remotely connected to the Wall Street on why this negative sentiment towards Apple, I get a multitude of different answers, mostly excuses. One quarter, its about lower than expected device sales, one quarter its lower than expected next quarter prediction, one quarter its something else. Note the words, 'lower than expected' appear many times in these excuses. How can analysts who have so called experience in the stock market and company analysis, continuously expect higher than what Apple delivers almost always. Why can't they get it right even once, when it comes to Apple? It some how feels that the Market is downgrading Apple, but is not honest on why exactly!

Note the words, ‘lower than expected’ appear many times in these excuses. How can analysts who have so called experience in the stock market and company analysis, continuously expect higher than what Apple delivers almost always. Why can’t they get it right even once, when it comes to Apple? It some how feels that the Market is downgrading Apple, but is not honest on why exactly!

This article on AppleInsider, sums up more than in detail what I mentioned in the above paragraphs on the numbers. But the question on why this is happening still remains unanswered. Could it be that the Market's lack of trust on Apple (yeah it sounds weird putting it on words, customers don't trust Google and analysts don't trust Apple) is actually stemming from a bigger issue? I think so and it has to do with Tim Cook or rather with the absence of Steve Jobs. I know it sounds ridiculous, after more than two years of Steve Jobs passing and after how Tim Cook has repeatedly shown that he's more than capable to run Apple successfully. But more that this being a trust issue of the Market with Tim Cook, I think this shows how much faith and trust, Steve Jobs commanded, not just from technology industry, but also from the investors. The Stock Market still does not believe that Tim Cook's Apple can, if not outshine Steve Job's Apple, can even match it. And all the negative sentiments towards the company are just symptoms to the the actual problem, that is this. The technology industry seems to have overcome this hurdle, but the Stock Market is yet to. 

The Stock Market still does not believe that Tim Cook’s Apple can, if not outshine Steve Job’s Apple, can even match it.

While this is an unfortunate situation for Apple and Tim Cook and seemingly undeserved, is there a solution to this conundrum? There might be. As usual time might heal this negative sentiment. Or new product categories, like the iWatch or something else might jumpstart the reversal in trend, but nothing is certain as of now. What is certain are the numbers and no one can deny this (that's why I love numbers, they're straight forward, though people's interpretation of them are not), Apple as a company, currently, outshines Google in almost every aspect of its functioning like, earnings, revenues, customers' trust, being smart with its acquisitions, etc., but is still looked down upon by the Stock Market!