This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Apple vs. Amazon: The Ground Is Shifting

NEW YORK ( TheStreet) -- I've written often about Apple (AAPL - Get Report) and Amazon (AMZN - Get Report) over the past few months. It hasn't been fashionable to be bullish about Apple and bearish on Amazon. However, after watching enough companies like Baidu (BIDU - Get Report) and Crocs (CROX - Get Report), I have learned to stick to my guns.

Stocks fall into and out of favor at times, forcing the price to move along with the herd, and I, for one, am glad. Money couldn't be made if stocks weren't mispriced. Actually, it's probably more true that stocks stumble into "fair value" on occasion.

I know what you're going to say: "Fair value" is subjective, and that subjectiveness induces emotional decisions. Once we include emotion in the selection process, logic is, by definition, no longer the master compass.

I'm not surprised that Apple was up strongly Monday on a rather weak day for the market. The S&P 500 ETF SPY (SPY) gapped lower on news about an economy that is smaller than Apple in terms of economic importance.

Are rumors of an increase in its dividend driving the price higher? Maybe, but if it weren't for rumors, it would be something else. The simple fact is that the media has whipped and kicked this dead horse for all it's worth, and now has moved on. Those who wanted to downgrade the stock have (often a bullish signal in itself), and the naysayers have found the next cool thing to bash.

Has Apple turned into a "value" stock from a growth story? Maybe, but you can call Apple a value stock all you want, and the numbers still demonstrate growth. It wasn't lost on some of us that Apple just reported its best quarter ever.

In addition, Apple sports a 2.4% dividend yield in what may be the safest dividend in the entire solar system. Apple has a payout ratio of about 10% and enough cash to keep the dividend checks coming long after I put in my last trade.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $123.22 -0.82%
AMZN $370.45 0.84%
BIDU $207.20 0.86%
CROX $11.62 1.80%
EBAY $57.62 0.18%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs