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I find amusement (almost daily) in reading the various Apple vs. Google discussions / flame wars in the technology and investing circles. It is an interesting case study in both technology and business, as the two companies clearly have very different strategies, but are both currently fighting over the very same turf.

Investing is entirely about being able to look forward into the future. People who make money in the market know the most important rule in investing: stock prices should always reflect future expectations. This is why "average" investors seem to get burned, they simply get into a stock too late, after they've heard all the good news... or... vice versa, they exit too late, after they've heard all the bad news. By the time they've heard about the news, it's already been reflected in the stock price, and is most-likely in the process of turning the other way. Why do I mention this? Because I believe we're currently seeing inaccurate stock price reflections for both Apple and Google considering the strategies they are taking for future growth. Let me explain:

I believe we're seeing a point now where Google's expectations are not high enough simply because people don't fully understand what Google is doing with the cloud and what that means, while Apple's expectations are currently too high because of it's recent (but past) success.

Google is developing a next-generation, always-on, super-computer that you don't have to own, buy, or maintain. They will do it for you... for free. You can do everything you're doing on your computer right now, but you can do it from any device, anywhere, and without worrying about transferring to computer XYZ, syncing it with version T, or storing it on drive F.  Everything is always on, available, accessible, and stored all in one place. Oh, and everything you use is smart too, meaning it is search-able, can interact with others, itself, and it's contextual. If everything is stored in the cloud, the cloud can work with it all together leveraging contextual relationships, meaning documents can access calendars can access contacts can access location, all irrespective of your device. This framework is extremely powerful and will allow Google deliver real and tangible benefits to consumers in ways they haven't yet even thought of.

Apple has had great success in the past with hardware development and it's music store. However, the basic principals of the Internet are working against both of these models of success. Hardware is becoming less and less relevant as more "work" is done in the cloud (the decline of desktop PC sales), and there is an extremely low barrier to entry for online music sales, pretty much anyone can enter that market rather cheaply. There's nothing revolutionary about selling and downloading digital music.

The main reason I'm betting on Google is I just don't believe Apple's great hardware design and easy-to-use iTunes application is enough to power much more meaningful future growth 2-5 years down the line the way Google's cloud framework is. Sadly enough, many amateur investors are still pouring into Apple because of it's recent but past success. iPhone 4 and the iPad are great products and currently great sellers, but nothing revolutionary or game-changing. Even more importantly, Apple's strategy for the future appears to be "just crank out more cool devices." Do they have anything new, anything truly remarkable, any game changers? It's really just nice hardware, which will be profitable, and probably for a while, but it doesn't compare to a new way of doing everything that truly adds value to everyone that uses it regardless of what device they are using. To me, the cloud represents the future infrastructure, highway, and even the gas companies, whereas Apple really just makes nice cars.