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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apple Is Apple, Not Google

Stocks in this article: AAPL GOOG FB MSFT DELL SIRI

NEW YORK ( TheStreet) --Just when I thought it was finally over, TheStreet's Dana Blankenhorn brought it back to life.

Leading up to Apple's (AAPL) announcement that it would cave in to normalcy and issue a dividend and buy back stock, all flavors of people floated ideas about how the company should spend its billions. I rarely involved myself in that type of talk. Whether I have been bullish or bearish short-term or long-term, I have generally stuck to the premise that Apple, not shareholders or the media, does the best job of managing its money.

I won't name names, but participants in that game made a case for why Apple should buy everything from Dell (DELL) to Sirius XM (SIRI). It was just all so absurd.

Now Blankenhorn, who is anything but absurd, brings back the loony Apple M&A discussion in Why Apple Buying Facebook Now Makes Sense.

Blankenhorn argues the deal makes sense for several reasons, including:

  • Apple does not have a good social presence.
  • Facebook (FB) investors would appreciate it if Apple paid a premium to pluck them from under water.
  • Apple can afford to do it.
  • The U.S. Department of Justice wouldn't try to stop it.
  • Facebook would make Apple "younger" and the latter could groom Mark Zuckerberg to be Tim Cook's successor.
  • I'm not quite sure if I will ever be able to understand this seemingly collective desire for Apple to make indiscriminate, multi-billion dollar purchases. It makes more sense to challenge the company to close the state of California's budget deficit (actually, I don't think that's completely crazy).

    It's tough enough for run-of-the-mill firms to integrate after major mergers and acquisitions, let alone one that has Apple's quirks. Why would Apple want to go through that process, particularly at a time when it has never been more successful? And, if I am correct in my belief that the company will fall from greatness over the long-term, is buying Face book -- or any other company for that matter -- the answer?

    In an article published by TheStreet on Tuesday, I discussed Apple's position of strength vis-à-vis Google's (GOOG) frustrating lack of focus.

    While I understand that just about everything Google does comes with the same end goal, I just cannot endorse what Google has become. Back when the company bought YouTube in a $1.65 billion stock deal, Pete Cashmore at Mashable said: Google's mission is to put ads on as much content as possible.

    While it has certainly accomplished that, where does Google go from here? Pull up a YouTube video. It's like watching public access television as the spam-like Google ad appears at the bottom of the screen. There's little thought -- or so it seems -- around how the ad gets served. Just churn'em and burn'em. While I have been a Google bull historically, I am not sure how much longer I can hang with what I perceive as a lack of focus and innovative forward momentum.

    1 of 2

    Select the service that is right for you!

    Action Alerts PLUS
    Try it NOW

    Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

    Product Features:
    • $2.5+ million portfolio
    • Large-cap and dividend focus
    • Intraday trade alerts from Cramer
    • Weekly roundups
    TheStreet Quant Ratings
    Try it NOW
    Only $49.95/yr

    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
    • Upgrade/downgrade alerts
    Stocks Under $10
    Try it NOW

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

    Product Features:
    • Model portfolio
    • Stocks trading below $10
    • Intraday trade alerts
    • Weekly roundups
    Dividend Stock Advisor
    Try it NOW

    Jim Cramer's protege, 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
    • Alerts when market news affect the portfolio
    • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
    Real Money Pro
    Try it NOW

    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.

    Product Features:
    • Real Money + Doug Kass Plus 15 more Wall Street Pros
    • Intraday commentary & news
    • Ultra-actionable trading ideas
    Options Profits
    Try it NOW

    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.

    Product Features:
    • 100+ monthly options trading ideas
    • Actionable options commentary & news
    • Real-time trading community
    • Options TV
    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!


    DOW 17,891.33 +86.53 0.49%
    S&P 500 2,072.57 +1.92 0.09%
    NASDAQ 4,774.0440 +8.6640 0.18%

    Brokerage Partners

    Rates from

    • Mortgage
    • Credit Cards
    • Auto

    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