Obviously, Apple is not like Microsoft

“Barclays has lost faith in Apple and thinks you should too,” Mark Rogowsky reports for Forbes. “It believes the time has come to dump the most valuable company because of some superficial similarities to Microsoft, which traded sideways through most of the current millennium.”

“While it’s certainly challenging to predict the future of Apple’s share price, it’s fairly easy to eviscerate the facile argument presented by Barclays in the Wall Street Journal (and elsewhere) concerning Apple,” Rogowsky reports. “In telling investors to “step aside,” analyst Ben Reitzes says the smartphone market is maturing, nothing in Apple’s product pipeline will make a big difference like iPad or iPhone did, and there’s a whole host of reasons to see Apple as following in the footsteps of Microsoft.”

“Most of the argument works like this: Barclays sees some kind of similarly between the two companies and then concludes that because of this similarity, history will repeat itself,” Rogowsky reports. “You and I might do the same kind of pattern matching that Barclays does with things we’ve seen before. We might, for example, get caught in a storm and arrive home soaking wet. But what we don’t do is run through a neighbor’s sprinkler on a different day and conclude that it just rained. The failure to spend even a moment comparing the fall in the price of Apple and Microsoft’s share prices is like not understanding the different reasons why the two sets of clothes are wet.”

Much more in the full article – highly recommended – here.

Related article:
Barclays downgrades Apple stock rating – February 21, 2014

14 Comments

  1. This is the same Barclays that finance the loans for Apple customers in the UK.
    You’d think they would know from their own experience about Apple, rather than trying to read tea leaves.

      1. Maybe there had been a development I’m unaware of but last I read Barclays are suggesting that $570, is still a target for APPL shares and a recommending just a downgrade from overweight.
        They’re not bearish just less bullish than previous.

    1. I like how he closes the article about what a stupid moronic analysis Ben Rietz for barclays gives:
      “In the meantime, though this space doesn’t provide investment advice, it does recommend ignoring any that’s provided by banks named Barclays.”

      That says it all. Barclays should fire Ben Reitz. He is the village idiot.

  2. What Apple did with the iPad mini alone proves that they’re nothing like Microsloth. If Micro$oft had a cash cow such as the iPad, they never would’ve released a smaller, cheaper version that threatened to obsolete the big boy. Not to mention a succeeding edition that gave them the exact same specs.

    Apple is still foolish and unafraid to kill their own products and disrupt markets that they themselves dominate. That’s a large part of what separates them from other companies that had the throne. They don’t see themselves as kings, rather like Steve said they’re the biggest upstart in history. That’s why they take so long to perfect products because, unlike Google and Microsoft, Apple operates as if they don’t have room to fail. It keeps them hungry.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.