5. RIM's Fine Line
With all deference to Spinal Tap vocalist David St. Hubbins, the line between "stupid and clever" is not "fine" at all. In fact, it's pretty fat. And based on how the folks at Apple (AAPL) and Research In Motion (RIMM) spent the past week, you can see how fat it is.
Let's start with the clever side, shall we?
Speaking of lines, hundreds of people queued up outside Apple stores worldwide last Friday to get their geeky little hands on the new iPhone 4S, one of the last products developed under the late, great Steve Jobs. At the New York store on Fifth Avenue with its super chic glass entrance, Apple enthusiasts stretched half way down the block, leaving some tourists wondering if the Wall Street protestors had taken a wrong turn and found themselves on Manhattan's opulent Upper East Side.Silly tourists! That field trip from Zucotti Park to John Paulson's mansion took place last Tuesday. Don't worry, maybe you can catch them the next time the revolution takes the number 4 train uptown. Anyway, the cheering masses certainly offered Apple's brass a reason to revel after what had been a trying time at the company. Most Apple watchers felt deflated when new CEO Tim Cook introduced an upgraded iPhone 4 instead of a brand-spanking new iPhone 5 earlier this month. And moods darkened still at the passing of Jobs, the company's guiding light, shortly thereafter. So the crowds that greeted the new gadget must have heartened Apple execs, almost as much as the reported 1 million in opening day sales. The iPhone 4, for those keeping track, sold 600,000 units in its first 24 hours. It also pushed the stock more than 3% higher Monday, giving it a market cap of $390 billion and making it the most valuable company in the world. Of course, those gains were erased merely two trading days later when Apple missed analyst estimates by 23 cents, although Wall Street's sell-siders have deemed the whiff more a one-time event than the beginning of something broader. And by something broader we mean Google (GOOG) and its Android-based products seriously denting Apple's dominance, as opposed to a surge from RIM, which further entrenched itself at the other end of the clever/stupid spectrum after what was clearly a Hebdomas Horribilis for the company. (For those not brushed up on their Latin, that's 1/52 of an Annus Horribilis.) The company's signature BlackBerry product enraged users as a result of a global outage that lasted most of last week, even as RIM's counterparts at Apple were enjoying a warm customer reception to their new smartphone. To compensate angry consumers, the firm offered not money but free apps this past Monday "as an expression of appreciation for their patience during the recent service disruptions." "We have apologized to our customers and we will work tirelessly to restore their confidence," said co-CEO Michael Lazaridis in a statement. If he really wants to catch Apple, then RIM better turn it up to 11, to use Spinal Tap-speak once again. Otherwise, RIM stock, already down 60% this year, could see yet another really, really big bottom.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV