This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Why Apple Will Never Buy Twitter

NEW YORK (TheStreet) -- There are a lot of people in the financial press and on Wall Street who think they know how to run a company despite never having one run before. A case in point is Apple (AAPL - Get Report). For years, people have urged Apple to do something with its enormous cash hoard, perhaps even buy Twitter (TWTR - Get Report).

That will never happen, however, and I can assure you of that. The reason is an email from a top-level Apple executive.

As the Samsung and Apple patent trial continues to play out, Samsung's lawyers unearthed an email from Phil Schiller, Apple vice president of marketing, who said that he would never pay for social media monitoring tools. "I think paying money for social media tracking tools is nuts," Schiller wrote in the email, which came courtesy of Hubspot. "It is easy to track social media, I do it every day, there are lots of summary feeds, groups and notification tools built right in to the social networking sites, all free."

Twitter is the ultimate social media monitoring tool, and people have suggested that Apple should buy it. But it's already sort of done that, just for a lot less than the $30 billion or so it would take to buy Twitter, now that it's a publicly traded company.

In late 2013, Apple bought Topsy for the reported price of around $200 million, though Apple didn't confirm the price. What does Topsy do, you ask? Why it's a social-media analytics firm, of course. Precisely the thing Schiller said he would never pay for!

On the company's Web site, Topsy said users can figure out trends by looking at certain metrics. "Use precise metrics to model current trends against competitors or past events," Topsy wrote. "Design and optimize actions, or predict future outcomes."

Though it's not immediately clear how Topsy will be employed by Apple, a couple use cases could be Apple's App Store to continue refining search, or for iTunes Radio to help target songs and artists people want to hear. Either way, Apple is listening to social media, whether you want to believe it or not.

So for all the "intelligent" people saying Apple should buy this or buy that, perhaps by doing a little research they will realize that Apple probably has that figured out better than you do.

Why buy the cow (Twitter) when you can get the milk (Topsy) for next to nothing?

-- Written by Chris Ciaccia in New York

>Contact by Email.

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!
SYM TRADE IT LAST %CHG
AAPL $129.09 0.49%
TWTR $48.15 0.15%
FB $79.75 0.99%
GOOG $571.34 2.32%
TSLA $197.32 -2.96%

Markets

DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

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