Amazon misses revenues, misses earnings, lowers 1st quarter guidance and stock surges 9% after hours after announcing an operating income of $405 million. Gee, Amazon makes $400 million stock surges $4 billion in market cap. Apple makes over $23 billion in operating earnings and stock loses $56 billion in market cap.
Let me make sense of it for you, MBA school teaches that every industry eventually matures to have three competitors. Two that fight in out with one being mostly dominant and a third that always tries but never overtakes.
Apple is one of those but we don’t know who the other is yet. It is probably Amazon for content and either Amazon or Samsung for certain devices.
This is why Amazon is surging because people believe this is where it will end up.