Apple (AAPL) and Tesla (TSLA): Assessing Their Investment Potential After Trailing the S&P 500

The stock market often presents a paradoxical landscape where even the most renowned companies can trail benchmark indices. This year, within the assemblage deemed the 'Magnificent Seven,' two of the notable tech behemoths, Apple Inc. AAPL and Tesla, Inc. TSLA, have lagged behind the S&P 500's performance. Investors and analysts alike are now focusing a discerning eye on these stocks, deliberating over the potential for a significant rebound.

The Case for Apple Inc. AAPL

As a vanguard in the technology sector and a member of the Big Five American information technology companies, AAPL's influence spans across consumer electronics, software, and online services. With a banner year in 2020 that generated a staggering $274.5 billion in revenue, AAPL holds the title of both the world's largest technology company by revenue and its most valuable company. Furthermore, Apple has sustained its position as a significant player in the PC and smartphone markets, where it ranks fourth in terms of unit sales. Yet, despite these accolades, AAPL shares have not paralleled the S&P 500 in the current fiscal year, prompting questions among investors regarding whether this presents a buying opportunity.

The Analysis of Tesla, Inc. TSLA

TSLA has emerged as a trailblazer within the electric vehicle (EV) and clean energy domain, cementing its standing through innovative cars, solar products, and energy storage solutions. Headquartered in Palo Alto, the company has been pivotal in shaping the EV market, capturing significant shares in both plug-in and battery electric passenger car sectors. In 2020, it accounted for 16% of the plug-in market and 23% of the battery-electric market. Tesla's subsidiary, Tesla Energy, furthers the company's clean energy vision by being a leading installer of solar photovoltaic systems and a predominant supplier of battery storage systems in the United States. Despite these strides, TSLA's stock trajectory has not kept pace with the general market, raising queries on its investment merit at this juncture.

The reflection on the value of AAPL and TSLA as investments is not just a consideration of their past triumphs but also of their future prospects. Market spectators scrutinize various financial, strategic, and industry factors to decipher whether these stocks are poised for a turnaround that justifies investment today. As AAPL and TSLA navigate through the vagaries of market trends and investor sentiments, a common question lingers: Are these two gemstones ready to glow once again in the market's spotlight, or does their current lag depict a more cautious tale for prospective shareholders?

Apple, Tesla, Investment