Amazon's About to Pass Apple
I bet TheStreet contributor Robert Weinstein a beer that AMZN would hit $300 before $200. Then, after I wrote Amazon Will Beat Apple to $1000 , I received a whole slew of I'll betcha a beer cards and letters.
Harken back with me if you will. Check out some of the prescience in that September 2012 piece:
Amazon . . . provided Apple the succession plan shareholders weren't sure it had when Steve Jobs was ill. It goes like this: Amazon unseats Apple as the dominant force in tech and related spaces.
At several points over the last year, Apple stopped dictating the rules of engagement. As a result, Amazon will unseat Apple this decade as America's premier company, without being No. 1 in market share for any device. It doesn't even have to make money on hardware sales.
Crash. BOOM. Bang!
If you look toward the middle and end of the decade, there's a ton more uncertainty in Cupertino (can you say Apple TV?) than there is in Seattle.
As Apple sits on obscene amounts of cash, Amazon reinvests heavily in its business. It continues to roll like a perpetual startup with the appropriate mix of tunnel vision, natural ability, calm and reckless abandon.
Amazon doesn't live off of interest like a dying senior citizen. It riffs immortal as it makes the population reconsider the question of which tech company will rule the world.
Wall Street loves stable, well-oiled machines that don't miss. It will run AMZN to $1,000 on confident anticipation of a dynasty by the end of the decade.
Us literary types call that foreshadowing. Back in the old neighborhood we refer to it as the writing on the wall. The bell tolled for thee.
Hindsight really is 20/20. Clarity looks most clear in the rearview mirror. Because here we are with Amazon on the verge of another earnings report everybody will trash even as the stock rebounds, recovers and ultimately moves higher thanks to the faith Wall Street has in Jeff Bezos.
I was watching CNBC Wednesday afternoon. You know I love those cats -- to a person -- but they took the easy route, making the Cook-Bezos comparison. Should Tim Cook ignore Wall Street like Jeff Bezos does ? Ooh. Ah. But it's a bogus question. A gross misunderstanding of the situation.
Let's break it down.