This Day On The Street
Continue to site
ADVERTISEMENT
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

Why Does the Peanut Gallery Hate Apple?

NEW YORK ( TheStreet) -- On Friday, I published a wildly popular column: "Apple Loses if It Beats Itself."

It continues to receive thousands of page views. I reckon that's because it conveys a public consensus that many other writers refuse to reflect.

Apple (AAPL - Get Report) stock continues to struggle despite the the obvious reality that this company has zero meaningful competition. Yet the media pump the hysterical notion that Apple has lost its edge. Maybe it will, but in the current environment, that's irrelevant.

A reader pointed out on Twitter that not one comment on my column supported me; they all attacked me.

Let's make a few things clear out of the gate.

First, the major criticisms of my article from what amounts to a peanut gallery:
  • Google's (GOOG - Get Report) war on price makes sense as a way to distribute its Web services.
  • Google's Android is outpacing iOS worldwide.
  • Apple wins with consumers because of a "first to market approach." (That's a head-scratcher, I know.)
  • The author -- me -- is an idiot iSheep who does no research and has no idea what he's talking about.

I will address these points shortly.

But first, the column, as I write this follow-up, had received about 30 comments. I won't even account for the fact that several people commented more than once, making it more like 25 or so comments. But, based on the overall readership of the column, rough math reveals that about 0.015% of the audience commented on it.

That's hardly a landslide; it's what we have come to know as a "peanut gallery." The Urban Dictionary provides a definition:

The term originated back in the theatre, where the cheapest seats were those way at the bottom floor and where people purchased peanuts because they were the cheapest snack. If they disapproved of the performance, they would throw the peanuts.

The peanut gallery response on AAPL reminds me of the way Research In Motion (RIMM) bulls countered -- feebly -- when their company was crashing.

The random peanut gallery members who think Microsoft (MSFT) belongs in a conversation about competition with Apple should read this short, but excellent Businessweek piece on MSFT as the "classic value trap." The RIMM permabull of 2011 is the new MSFT permabull of 2012-2013.

I invite anybody who claims I do not do "research" to come sit with me in my office as I work 12 to 16 hours a day. Just because I do not regurgitate the same numbers everybody else uses or come to the same conclusions does not mean I do not do research.
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
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
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
SYM TRADE IT LAST %CHG
AAPL $112.88 -0.04%
GOOG $631.50 -0.96%
FB $91.21 1.60%
TSLA $249.50 2.70%
YHOO $33.47 -0.65%

Markets

Chart of I:DJI
DOW 16,623.57 -31.20 -0.19%
S&P 500 1,986.36 -1.30 -0.07%
NASDAQ 4,815.0350 +2.3270 0.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs