Could One of These Be the Next Apple Inc. (AAPL)?

And Google isn’t content to leave Android to smartphones alone. The company’s “Project Glass” has produced a futuristic pair of glasses capable of allowing the user to experience a form of augmented reality.

There’s also Chromebooks, the Nexus lineup of smartphones and tablets, and perhaps someday in the distant future, self-driving cars. For all these products, Google is rumored to be building a retail operation of its own. Google seems poised to follow Apple in creating products that excite and intrigue the masses.

AIG and Google certainly have had Apple-like performance
Hedge fund ownership and product excitement might be weak grounds for a comparison. But there is one trait both AIG and Google unquestionably share with the Apple of 2012: performance.

AIG’s shares have been remarkable over the last three months, gaining nearly 16%. Google’s performance has been even more impressive, with shares having rallied over 18% since mid-November. (Google just recently set a new all-time high.)

What are investors to do?
If the Apple comparison is truly valid, then there might come a day when investors in these companies should be cautious. Immense product hype and widespread hedge fund ownership could be indicative of a top. After all, there is a limit to how enthralled with something consumers can get before moving on. And, if practically every hedge fund is involved with a stock, there could be few buyers left in the market.

Of course, history never fully repeats itself, and there are many obvious differences between the companies. Still, investors ought to be mindful of investing trends.

The article Could One of These Be the Next Apple? originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.

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