How does that disappointment compare to Apple? With a bit of a market correction under way, it’s hard to think the shine is off the apple with Apple. GOOG, Samsung, AMZN have stumbled of late, even MSFT is on a downtrend, while AAPL hovers a few dollars short of the recently acquired all time high.
What’s going on?
Emperor’s Old Clothes
This is almost too easy. Wall Street loves a good growth story and for years Google, Samsung, Amazon, and Microsoft have flooded the tech press with PR based more on what should be considered lies than plans.
Microsoft got a bump because the board of directors bumped the CEO out the door, but the company’s core businesses– cash cows both (Windows and Office)– are coming up short in the mobile era.
Amazon’s flagrant misuse of ‘investing in infrastructure’ has become anemic, as the online retail giant still can’t figure out how to make a profit, or fend off dozens of more nimble competitors.
Samsung spent money like a drunken sailor to position itself head-to-head against Apple’s iPhone and iPad, but managed to find a niche in second place in the profits league, only to have profits diminished by competition from above and below.
What of Google?
Please. Google is a one-trick pony masquerading as a technology company to prop up what investors are figuring out the hard way– Google is an advertising company. Over 90–percent of revenue and profits come from selling ads. Not Android. Not self-driving cars. Not same-day deliver. Not Nexus this or Nexus that. Not glasses for Glassholes.
Google’s future, despite an 80-percent marketshare for Android on mobile devices, looks anemic thanks to the low uptick and lower margins on mobile advertising.
What of Apple? Today is the day to read the tale of the tape. Apple is a profitable behemoth with a whole line of highly profitable products. Go down the list. Mac, iPhone, iPad, Apple TV, iTunes Store, iOS App Store, Mac App Store, Apple Stores. Even the legacy iPod line brings in billions for Apple.
If only the Mercy Rule applied in the stock market.