So this isn't going to be a "bash Amazon (AMZN)" post even though they seem to have their sites set on my favorite growth story, Apple (AAPL). First off, I mentioned earlier that I don't consider this competition for the iPad, but for Barnes and Noble's (BKS) Nook (which Wall St. seems to agree with since BKN is down 4.5%) so I'm not worried about it eating iPad market share. The Kindle 'Fire' actually looks pretty cool and it's hard to beat the price. I really like Amazon (AMZN) long-term and think they are where Walmart was 20 years ago. This is great company with rising margins and mo-mo like growth so they would be a nice add for any portfolio. Apple (AAPL) didn't really dip off the news and has remained flat all day, shifting between slight gains and losses. I think Apple (AAPL) needs to be bought hand over fist here since it's grossly undervalued, but there is one thing I'd like to point out. If the reports out of Asia are true and iPad demand is slowing, this will be reflected in the Q3 results slated to be reported next month. This could whack Apple (AAPL) even if they beat EPS estimates, but as I mentioned yesterday, I believe the 25% reduction in iPad orders out of China was actually just a shift in production to the new Brazilian plants opened by Foxconn. You know how these rumors start, some low-level managers at Hon Hai Precision (TPE:2317) and Foxconn (HKG:2038) (if you didn't know this already, stocks symbols in China are comprised of numbers, not letters) saw that orders were being yanked from their plants and extrapolated from that that Apple (AAPL) is reducing orders. These managers wouldn't be high up enough in the company to be privy to the fact that those orders were moved to Brazil. So what happens, JPMorgan bribes these guys for the info and voila, rumor started. I'm not saying this is exactly what happened but I disagree whole-heartedly with JPMorgan's report.
This is not a recommendation to buy or sell any securities. DAK was long AAPL at time of publication but positions can change at anytime.
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