Why Amazon’s stock price will beat Apple’s to $1,000

“Apple generates the vast majority of its revenue from hardware sales, not software. If the next piece of hardware bombs, Apple takes a hit. If the piece of hardware after that bombs, Apple takes another hit and we might have a trend. And so on,” Rocco Pendola writes for TheStreet.

“Without useful and beautiful hardware that people want to mix business and pleasure with, Apple dies,” Pendola writes. “Or maybe the devices remain useful and beautiful, but, for one reason or another, people no longer want to buy them. Same outcome: a fall from greatness.”

Pendola writes, “Amazon just disrupted the competitive landscape. In fact, it provided an Apple succession plan: 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… 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.”

Read more in the full article here.

MacDailyNews Take: iCal’ed for the moment when and if AAPL or AMZN first hit $1,000.

52 Comments

  1. “Wall Street loves stable, well-oiled machines that don’t miss.”

    Really ? Apple is very stable, perfectly oiled and has been growing rapidly for more than ten years, yet Wall Street continues to have a love / hate relationship with Apple.

    1. Funny too that Amazon’s foray into devices is heavily influenced by the leader – Apple. Amazon is more a follower, not a leader. I mean I like Amazon for merchandise but it doesn’t get my tech confidence dollars by a long shot. Apple reigns supreme.

  2. LOL. Where do these people come from? So AMZN, who operates on razor thin margins, will outperform AAPL? Ok. Someone either needs to go back to school or sell their shares in AMZN.

    Now, I don’t think that AAPL is infallible but it won’t be AMZN that tops them.

    1. How will Amazon beat Apple to $1000 a share? Jeff Bezos is a better entertainer than Tim Cook. Jeff Bezos has more powerful friends on Wall Street than Tim Cook. Apple has gone up about $40 in six months. Amazon has gone up $80 in five months. Apple’s P/E has gone from around 15 to 16 in six months. Amazon’s P/E has gone from around 150 in mid April to 316 in early September. (the P/E has easily doubled). Warren Buffett would rather invest in Amazon than he does in Apple because he understands Amazon more.

      All you have to do is look at the math and you can see that Amazon’s hare is outrunning Apple’s tortoise to see which stock will reach $1000 sooner. Wall Street says that Amazon has a far brighter future than Apple.

      Even though the whole idea that Amazon can compete with Apple when it comes to tablets seems absurd, but there are many out there that believe Amazon will take Apple down without even knowing how many tablets Amazon actually sells. Why? Because Jeff Bezos stole Steve Jobs Reality Distortion Field.

    2. Google will be the closet contender. Only 14 years old and keeping up just fine short of numbers of outstanding shares. Of course, there could always be a diamond in the rough that we have yet to pay attention too coming out of China.

  3. I think this advertisement business model will come to an end sooner rather than later.

    If every company is making money with advertising and nobody is selling for a profit, there won’t be any company left to pay for the advertising.

    It will end, it’s a bubble.

  4. So is this a back-handed death knell for Apple? This makes absolutely no sense. Apple makes money on their ability to meld the hardware and software into something that is entirely useful and undeniably desirable- so much so that large companies have to slavishly copy them just to keep up. No other business today does this nearly as well- Apple just gets it. Amazon, as of now, is just another ‘me too’ company trying to find a niche in the space that Apple invented and created. I like competition, but in no way is Amazon blazing innovative trails here. Apple OTOH will continue to innovate- ‘nuf said.

    1. I think Walmart will kill Amazon in the long run. Walmart is the genius in brick-and-mortal retail sales but is upended by Amazon at present. Never underestimate Walmart, they are lying low now but when they come up with a better model for melding brick-and-mortar with virtual marketing, Amazon will be thrown under the bus. Anyway, the present model of Amazon is a copy of what Walmart pioneered in the old model.

  5. First of all, its “the Street”.. A bunch of hit who*es that love to play Apple to bounce the market..

    I have seen so much crap from them that when someone quotes “the Street”, I just totally ignore the piece.

    Now, Amazon is a good solid company and wall street does love that as it fits all the usual rules of business. It does not excite, thrill, or impress, it just sits there and makes a few bucks while selling at 317 times earnings… (WOW WTF.!!!) Talk about manipulating a stock value. 🙁

    Apple leads the industry. If Apple did not show the way, there would be no progress. I mean after all, netbooks were just little cheaper pcs cause the industry had NO CLUE as to how to innovate.

    Next on todays list is????

      1. Is old Scotty even mentioned by anyone any more? He’s like old Rob Ederle of the Ederle Group (consisting of his wife, him, and some pet). Totally a tool and irrelevant. Just Apple bashers

  6. 1000 is an arbitrary number. If both the stocks reach/hover around anywhere near 1000, Apple’s market value still would remain multiple times over Amazon’s value. Apple had a few stock splits in its history, otherwise had they continued like Google’s run, they might have crossed the $1,000 per stock mark already.

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