Analysts are seeing noticeable reversal on how Apple Inc. (AAPL) stock performs as compared to BlackBerry Ltd (BBRY) stock.
As how J.C. Parets of Eagle Bay Capital put it, the 'sell BlackBerry and buy Apple Inc. (NASDAQ:AAPL)' trade has flipped.
Mr Parets predicted that BlackBerry Ltd (BBRY) can double its shares in 2014.
Mr Parets pointed out that the biggest catalyst with how BlackBerry Ltd (BBRY) is performing at present was how investors used to shun the stock in the past.
"Sentiment is a beautiful thing. If everyone thinks something is going lower (in this case BBRY), there comes a point where anyone with that belief has already acted upon that belief (and sold). Eventually there just aren't any sellers left, and if all we have are buyers - epic squeeze. We saw it in BBRY and we saw it in S&P500 in early 2009. The best part about these extreme sentiment unwinds is that the ensuing rallies last longer and go further than your standard uptrend," Mr Parets explained.
He added that the opposite was what happened to Apple Inc. (NASDAQ:AAPL) with "all of the great news was priced into the stock by the end of 2012."
A recent report from Goldman Sachs listed Blackberry as one of the 50 stocks with over $1 billion market cap and that hedge funds were fond of 'shorting' BlackBerry Ltd (BBRY).
On the other hand, Goldman Sachs had Apple Inc. (NASDAQ:AAPL) in its "hedge fund VIP" list.
Factset reported that 50 biggest hedge funds increased their Apple exposure by 3.6 per cent in Q4 2013. However, with Carl Icahn's decision to drop his prodding on the $50 billion Apple buyback programme, these hedge funds might also drop their interests on Apple Inc. stock.
Meanwhile, Apple Inc. (NASDAQ:AAPL) real time stock quotes published by NASDAQ OMX (Feb 25) is at $522.68 with 0.92 per cent decrease; previous close at $527.55; today's high at $530, today's low at $501.50; 52 weeks high at $575.1358, 52 weeks low at $385.10.
BlackBerry Ltd (BBRY) real time stock quotes published by NASDAQ OMX (Feb 25) is at $10.71 per cent up by 8.95 per cent; previous close at $9.83; today's high at $10.90, today's low at $10; 52 weeks high at $16.82, 52 weeks low at $5.44.