NEW YORK (TheStreet) -- While I don't expect investors to turn their backs on basics like dividend reinvestment and balance sheets, it makes sense to update your worldview from time to time.
Of course, many AAPL bulls responded with the standard defensiveness. That's expected; therefore, it doesn't bother me.
I'm still taken aback, however, by the responses from those who take exception, not with long-term AAPL bearishness, but any hint whatsoever of AMZN bullishness.Here's a sampling from Twitter:
@LeoKaplin - $AMZN @jimcramer @RoccoPendola how can you justify PE > 315 for any company.. Unless they found cure for cancerAMZN's P/E ratio is 315. AAPL's is just 16. Ford's (F) is freaking 2. That's tough to reconcile. I completely understand. It's almost as challenging to wrap your head around those P/Es as it is the marriage between Ric Ocasek of The Cars and the breathtaking Paulina Porizkova. And they've been together for more than 20 years. Save the tired, "Did you learn anything in 2000?" line. Because, yes, I learned a lot. I worked in San Francisco during the dot-com bust. I spent my days on the phone with instant IPO millionaires, VPs at companies like Extreme Networks (EXTR) and Foundry Networks. The experience taught me something that would have come in handy for folks holding the bag on Facebook (FB) from $40: Don't participate early on in an IPO. It also taught me about vision and competitive position. Extreme and Foundry sold widgets. Tangible products, yes, but did they really have a future in a world containing companies like Cisco Systems (CSCO)? Of course not. Unless you got lucky on the IPO or had good timing ahead of a buyout, you licked wounds. If, however, you had vision back in 2000 (I did not), you're counting profits with AMZN. This AMZN-EXTR comparison chart tells the story. AMZN data by YCharts
@wendland99 - @jimcramer @RoccoPendola this is assuming they make some profit, last quarter was 1% profits, what gives?
AMZN suffered when all hell broke loose in 2000. But, in hindsight, it's evident that it was a different type of suffering. Even back then, Amazon had a strong and sustainable -- we can now call it "unwavering" -- business model. Companies like Foundry and Extreme were founded to get bought out.
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 + 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