This Day On The Street
Continue to site
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

Amazon Headlines Need Warning Label

NEW YORK ( TheStreet) -- The transitive property of . . . smartphones?

Just because Apple (AAPL), Microsoft (MSFT) and Nokia (NOK) are purportedly releasing smartphones after Labor Day weekend, does it automatically stand to reason that Amazon (AMZN - Get Report) will too?

According to some in the media -- including Marketwatch -- the answer is "yes." But that answer relies upon the transitive property of smartphones, which we'll explain in a moment, and not on single sources (reliable or not) or any other shred of hard evidence.

Here's how the party started: Amazon sent out invitations Thursday about a Sept. 6 event. They didn't say what it was about. The best guess -- because they already have a tablet and the meeting seems to be organized by Amazon's Kindle division -- is that they will announce the next version of their Kindle.

But even that, which makes the most intuitive sense, is pure guesswork and should be clearly stamped with a speculative label. Reuters did well in this regard right in their headline: "Amazon event on September 6 sparks Kindle speculation."

Some in the media, though, went in an entirely different direction. Problem is, their reasoning was reed-thin, their sourcing nonexistent and, worst of all, they didn't, like the Marketwatch story on their more reasonable prospect of a Kindle, come with a disclaimer attached: This is unadulterated speculation.

Here's Marketwatch's headline: "Will Amazon launch smartphone in September?"

Their justification introduced us to that transitive property of smartphones: if A and B is doing it, then so will C.
With Amazon's AMZN -0.05% event timed for Sept. 6, one day after a Microsoft Corp. MSFT -0.93% holds a press conference in conjunction with Nokia Corp. NOK -4.69% in New York, and one week before Apple Inc. AAPL -0.11% is expected to introduce the iPhone 5, it's entirely feasible that Amazon could also talk about or launch its much-anticipated smartphone.

An "entirely feasible" concept, unsupported by an ounce of evidence, only serves to add to a culture of fervid speculation and does not merit an article, much less one that comes without a warning label.

At the time of publication, the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Marek Fuchs was a stockbroker for Shearson Lehman Brothers and a money manager before becoming a journalist who wrote The New York Times' "County Lines" column for six years. He also did back-up beat coverage of The New York Knicks for the paper's Sports section for two seasons and covered other professional and collegiate sports. He has contributed frequently to many of the Times' other sections, including National, Metro, Escapes, Style, Real Estate, Arts & Leisure, Travel, Money & Business, Circuits and the Op-Ed Page.

For his "Business Press Maven" column on how business and finance are covered by the media, Fuchs was named best business journalist critic in the nation by the Talking Biz website at The University of North Carolina School of Journalism and Mass Communication. Fuchs is a frequent speaker on the business media, in venues ranging from National Public Radio to the annual conference of the Society of American Business Editors and Writers.

Fuchs appreciates your feedback; click here to send him an email.

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AMZN $675.71 11.00%
AAPL $95.03 -2.90%
FB $116.73 7.20%
GOOG $691.02 -2.10%
TSLA $247.54 -1.60%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs