Which brings me to the takeaway here. Right now there are companies that have no appeal at all to the younger generation. We saw it with Coach (COH) and Tiffany (TIF), two older, out-of-touch brands that my two kids aren't the least bit interested in, not more interested than they would be shopping at JC Penney (JCP) or using Microsoft (MSFT) software or driving a GM (GM) car.
Yet if you are going to win the younger generation, the generation that will soon have the purchasing power, a generation that is much smarter than we are, you need to talk to kids like my kids. They now think that Apple's old. Not repulsive like a Hewlett-Packard (HPQ) or a Dell (DELL), just old. But that could change on a dime. All Apple would have to do is go buy Twitter, or Netflix, or even an outfit like LinkedIn (LNKD), which is developing quite a following among younger people joining the workforce. Heck, it could buy all three and really get its business back in touch with what younger people want.
Netflix knows the younger generation better than most think. Apple used to. That's one of the main reasons why Netflix can soar 40% on a 13 cent profit and Apple can plummet $60 on a $13 gain. It's a lesson that Apple better heed if it ever wants to get back in touch with what the next generation wants, even as it is more sure than ever that it does.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV