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March 20, 2018 | Apple, Schmapple — It’s Amazon We Need to Watch

Rick Ackerman

Rick Ackerman is the editor of Rick’s Picks, an online service geared to traders of stocks, options, index futures and commodities. His detailed trading strategies have appeared since the early 1990s in Black Box Forecasts, a newsletter he founded that originally was geared to professional option traders. Barron’s once labeled him an “intrepid trader” in a headline that alluded to his key role in solving a notorious pill-tampering case. He received a $200,000 reward when a conviction resulted, and the story was retold on TV’s FBI: The Untold Story. His professional background includes 12 years as a market maker in the pits of the Pacific Coast Exchange, three as an investigator with renowned San Francisco private eye Hal Lipset, seven as a reporter and newspaper editor, three as a columnist for the Sunday San Francisco Examiner, and two decades as a contributor to publications ranging from Barron’s to The Antiquarian Bookman to Fleet Street Letter and Utne Reader.

In the list of touts below, Amazon has replaced Apple as the stock we should care about most.  The latter may still be the most valuable company in the world by capitalization, but iPhone sales are finally meeting resistance at prices Android-phone users have long considered ridiculous.  Because of this, AAPL has languished recently while AMZN has been developing thrust for the relatively small push it would take to propel the stock into record territory once again.

A Pure Play

To be sure, owning shares in both companies is a must for any portfolio manager who wants to keep his or her job. But AMZN, unencumbered by news of sluggish sales, is now the purer play on institutional mindset and seems likely to outperform AAPL for the duration of the bull market. A wild card is that Apple may at some point in our lifetime resolve iPhone’s chronic battery problems. That would be welcome news for consumers, but we shouldn’t hold our breath waiting for such an epiphany to send Apple’s shares into spasms of exuberance.

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March 20th, 2018

Posted In: Rick's Picks

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