These companies seem to be reacting positively to any sort of news flow: good or bad. Investors are hoping growth will continue and that another investor in the future will pay more for the shares as there is a minimal income, or dividend, stream from either.
It may also be an overreaction with investors seeking out either those stocks that can least withstand the current problems, very much in the case for Apple, or those that may emerge as ultimate winners, perhaps Wizz.
But there has to be a price to pay for these, surely?
Admittedly, Apple generates a lot of cash but it trades on a multiple over 30 times it operating profit.
This is where I think investors perhaps offer too much weighting to such branding power, in Apple’s case, or ability to survive Covid, as for Wizz. The latter won’t see profits until 2022 yet it is priced for a much better scenario.
In contrast, Vodafone trades on sub 18 times operating profit. Its telecom and broadband services should also be in high demand and it is set to benefit as 5G is rolled out.
In addition to being cheaper than both Apple and Wizz, the yield of nearly 7pc is an attractive return even before we consider growth.
I watched an extremely interesting documentary on the ‘Black Death’, based on work published in the New Scientist that casts doubt on the theory of fleas and rats transmitting bubonic plague. It hit Europe in 1347, but I hadn’t realised that that it continued to stalk the world for over 300 years.
Clearly Covid-19 is nowhere near as devastating but having been out to the gym, some shops and the barbers, we simply have to live with this changed environment and the restrictions it brings.