TRADES: UPDATE ON AAPL vs. AMZN
Hallelujah!!!
This trade has returned 34% since I recommended it on 8/26. Obviously Apple's earnings were a blow out. Analysts have been way too conservative on this one. At $45, the growth will slow. The play probably will still work going into the Christmas season. iPod is a monster brand value and rightly or wrongly defines what is cool for today's youths.
On the flip side, Amazon is acting very weak, and shorting it has been OK. I still expect them to warn that digital music sales will hurt them at some point. Borders warned two days ago, so maybe book sales are slowing. My sense is that Bill Miller may be exiting his positions too. AMZN and IACI has cost him dearly this year.
Hallelujah!!!
This trade has returned 34% since I recommended it on 8/26. Obviously Apple's earnings were a blow out. Analysts have been way too conservative on this one. At $45, the growth will slow. The play probably will still work going into the Christmas season. iPod is a monster brand value and rightly or wrongly defines what is cool for today's youths.
On the flip side, Amazon is acting very weak, and shorting it has been OK. I still expect them to warn that digital music sales will hurt them at some point. Borders warned two days ago, so maybe book sales are slowing. My sense is that Bill Miller may be exiting his positions too. AMZN and IACI has cost him dearly this year.
posted by Johnny @ 10:27 AM
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