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
TheStreet Open House

Through Apple's Pain, Amazon Remains

NEW YORK ( TheStreet) -- As Apple (AAPL - Get Report) continues its crash, there's something the media and Wall Street analysts should use to illustrate the story, but, for some reason, they choose not to.

While I can understand the skittishness inherent in's (AMZN - Get Report) lofty multiple, you have nothing to fear but fear itself. Jeff Bezos is in charge. And, in a world where Tim Cook leads Apple, that's about as good as it gets. In fact, it was about as good as it gets when Steve Jobs was alive. Bezos has always been and remains one of the greatest CEOs of our time.

Relatively speaking, AMZN continues to hold up well as AAPL tanks.

Confidence born out of a level of certainty established by the track record of management. That's what separates the two companies and stocks.

Amazon gets the benefit of the doubt because it deserves it. Apple does not because, without the safety net of the sure and steady rhetorical, consumer experience and design genius Steve Jobs, it doesn't deserve it. Simple as that. Throw your charts and MBA textbook sketches of valuation out the window -- they mean nothing in these parts.

All that matters is sentiment, influenced by several ingredients management ultimately has control over. Who owns the narrative? Who dictates the story? Jeff Bezos does this with a noble silence. Only the greats pull it off. Cats like Bezos and Jobs.

Reed Hastings at Netflix (NFLX - Get Report) -- another excellent example of dominating the narrative. He weaves his company's tale with a level of bravado that patches over the glaring holes in the Netflix business model and it's competitive position.

Tim Cook is somewhere in between. In purgatory. In a land of uncertainty. Leading a company mired in the stuff and, unlike Jobs, Bezos and even Hastings, he has no idea how to handle it.

Cook will not fly under the radar much longer. He's not Steve Ballmer.

The chart pretty much supports my AAPL/AMZN thesis. Expect history to repeat itself in the coming weeks. AAPL Chart AAPL data by YCharts

-- Written by Rocco Pendola in Santa Monica, Calif.

Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
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!
AAPL $123.25 0.00%
AMZN $370.56 0.00%
NFLX $414.77 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

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