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

Beats Deal Will End Apple's Latest Bull Run

While Apple has been extracting value for shareholders, investors have been switching allegiance to Facebook (FB - Get Report), whose shares have doubled in value over the last year, while shares in Apple are up by just 31%.

Facebook now trades at a price-to-earnings multiple of 71. Its year-over-year sales growth of 70% has been achieved with rising margins, which are now as good as Apple's own. Facebook also lives in the Internet core, while Apple's devices run at the Internet edge, so it can change itself at a relatively low cost.

There are said to be five stages of fame, just like there are five stages of grief. Who's Apple, get me Apple, get me someone like Apple, get me a young Apple, and who's Apple?

Facebook recently bought Oculus Rift, makers of a virtual reality headset, for $2 billion. So Apple responds by buying Beats Music, started by an aging hip-hop artist, for $3.2 billion. Get me a young Apple indeed.

If placing those stories side-by-side makes Apple sound like a bald, aging man going through the middle aged crazies, that's precisely the point. Yes, I own Apple shares. But next year I turn 60, and I'm not pretending that 60 is the new 30.

At the time of publication the author owned shares of AAPL.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

>>Read More: Tim Cook Is a Genius if Apple Buys Beats

>>Read More: Beats Doesn't Make Sense For Apple

2 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
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 $111.09 0.28%
FB $92.53 -1.60%
GOOG $640.31 -0.18%
TSLA $237.91 -3.30%
YHOO $30.82 -0.10%


Chart of I:DJI
DOW 16,786.62 +10.19 0.06%
S&P 500 1,975.60 -11.45 -0.58%
NASDAQ 4,723.9290 -57.3350 -1.20%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs