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

Sorry, But This Guy is a Total Idiot on Apple

NEW YORK (TheStreet) -- First, I must apologize for the name calling in the headline.

I know ... How can you apologize for something you could have very easily stopped yourself from doing after realizing it was an apology-worthy offense?

That's valid. But sometimes the story just requires strong language to do it justice. They didn't drop the f-bomb 522 times in "The Wolf of Wall Street" just for giggles.

I read a lot of stuff. Everyday. Hundreds of articles. Even some books. I spend a lot of time parsing through pretty horrendous stuff -- some (OK, much) of it my own -- to get to the good stuff. Or at least something I can use.

Must Read: Stop Calling Google 'Big Brother'

But the "Op/Ed," Mashable's Todd Wasserman wrote -- Google is Eating Apple's Lunch -- might be one of the most myopic, patently ignorant pieces of tech journalism I have ever come across in my life.

It's as obvious as it is misguided. And along with much of the rest of the world, it wants to dichotomize the Apple (AAPL - Get Report)/Google (GOOG - Get Report) situation because, of course, a black and white planet is so much easier to navigate.

Wasserman leads off by being the 602nd person to tell us that Nest "appear(ed) to be a natural fit for Apple." He recycles the intuitive, but weak reasons why before staking his entire claim that Google is eating Apple's lunch on side-by-side lists showing Google's M&A activity versus Apple's as well as the regurgitated take that Apple doesn't know how or isn't spending its cash properly by not spending enough of it.

I pretty much supported my position on this matter in Monday's Why Apple Doesn't Need Nest, but to add a bit and reiterate ...

Since when does being a bigger M&A player indicate supremacy?

That's just absurd. There's no logic to support the notion that because Google has outspent Apple on buyouts and Apple has allegedly "missed" all of these acquisitions that Google is eating Apple's lunch.

If nothing else, it shows a fundamental misunderstanding of exactly what Apple's "lunch" is.

Its lunch is a steady stream of premium-priced, high-margin hardware units sold. That defines Apple's core. As I noted in the above-linked article, there's no indication whatsoever that Apple should abandon its way ... its long-standing strategy. If and when it does, you ought to worry.

For instance, when it decided to pay a dividend and do a buyback, that should have given you pause. But to watch Apple operate, silently with its collective head down behind closed doors while everybody else does whatever everybody else does, should, IMNSHO, give you confidence. Because that's what Apple, in recent years, has always done. People speculate. Rumors fly. Apple ignores or, if it responds at all, pacifies. It disrupts and destroys when its ready

It absolutely should not make otherwise intelligent people jump off of a wholly uninformed deep end. But dichotomy has a way of luring the otherwise intelligent in.

We can't simply assign Google and Apple different strategies and call them both great -- even though we should. We have to pit them against one another. That's not just idiotic. That's sad.

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

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks. Rocco Pendola is a columnist for TheStreet. Whenever possible, Pendola uses hockey, Springsteen or Southern California references in his work. He lives in Santa Monica.

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
AAPL $93.75 -1.10%
GOOG $693.00 0.29%
FB $117.53 0.69%
TSLA $240.76 -2.81%
YHOO $36.61 0.06%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs