Apple Is Still Cool
by Jacob Steinberg
Over the last few weeks, we kept seeing articles and blog posts talking about how Apple (AAPL) is not cool anymore and how Apple became a boring company. These were based on the argument that the competition's products were as good as Apple's products and that people didn't care about Apple's products anymore. This argument mostly came from analysts who I call "trend followers." Basically, analysts are meant to "set trends" rather than follow them but we hardly ever see that happening. Usually, analysts will watch a stock and try to explain what happened to the company after it fell sharply or rose considerably. For example, when Apple was rising from $400s to $700s rapidly, all the analysts were talking about how great Apple's products were, how the company had an amazing image and how it could easily see $1,000 per share. During that period, not one analyst was talking about Apple being boring or competition catching up on Apple. Then Apple fell down to $400s and a lot of trend follower analysts started to wonder why it happened and they tried to come up with stories to justify Apple's fall. Then they started to tell people how Apple's products are not cool anymore and how Apple is getting boring. Of course, when Apple starts rallying again, the same analysts will be talking about why Apple is the coolest thing in earth right now because most analysts are trend followers rather than trend setters and their job is simply to tell people what happened "after the fact". read more »
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