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.