Stock sell-off shows an emotional investment in Apple

Hard to imagine anyone lining up for a Microsoft product these days, let alone such hullabaloo for a computer program. Microsoft still dominates the market for operating systems. It has a market valuation of $232.6 billion.

But you probably wouldn't ask the company to dance at a crowded nightclub.

Google, Facebook, Twitter — they all are attractive. Then again, you used to go out with Yahoo, MySpace and Friendster, and look where that got you.

I understand there are legions of Apple fanatics out there for whom the company can do no wrong. They're determined to make the relationship work, no matter what.


Get Our iPad App!

I never drank the Apple Kool-Aid. They make cool products, no question. Steve Jobs was a compelling figure.

But any company that shrouds itself in more secrecy than the CIA is a little weird by my reckoning. Competitive instincts notwithstanding, Apple always seems as if it's trying to hide something. That doesn't make for a healthy relationship.

More to the point, what has Wall Street so spooked is the realization that Apple may not continue posting stratospheric growth numbers.

"Apple can be the greatest company in the world, but there's some price where it's a lousy stock purchase," said Kent Daniel, a professor of finance at Columbia University in New York.

He agrees with people who long have said that Apple's stock was overpriced, yet Apple has continued pulling high-tech rabbits out of its hat.

"So far," Daniel said, "the naysayers have been wrong."

Is Apple a good investment? Well, like I tell my weatherman friend, if you think the iPad is impressive and you think Apple still has plenty of mojo, stick with them. If not, maybe it's time to move on.

Human relationships are tricky enough. You don't want to get too involved with a corporation.

David Lazarus' columns runs Tuesdays and Fridays. He also can be seen daily on KTLA-TV Channel 5 and followed on Twitter @Davidlaz. Send your tips or feedback to david.lazarus@latimes.com.

la-fi-lazarus-20130125

Featured Stories

The Courant is using Facebook comments on stories. To comment on courant.com articles, sign into Facebook and enter your comment in the field below. Comments will appear in your Facebook News Feed unless you choose otherwise. To report spam or abuse, click the X next to the comment. For guidelines on commenting, click here.

CONSUMER COLUMNISTS

Kevin Hunt - The Electronic Jungle

Kevin Hunt: Bowers & Wilkins Z2 Speaker Dock Review - May 17, 2013 - The aerophobic Z2, the first speaker dock from Bowers & Wilkins that doesn't look like a dirigible and doesn't cost $600, would...

Gail MarksJarvis

Inside Penny Pritzker's portfolio: How a billionaire invests - May 19, 2013 - How do the wealthy stay wealthy? The mandatory financial disclosure released last week by commerce secretary nominee Penny Pritzker...

David Lazarus

Travel nightmare: Dakar, Dhaka — what's the difference? - May 17, 2013 - Sandy Valdivieso and her husband intended to fly from Los Angeles to Dakar, Senegal. They ended up almost 7,000 miles off-course in Dhaka,...

Korky Vann

Korky Vann: In Salisbury, Prime Finds Sells Antiques For Charity - May 12, 2013 - When it comes to a perfect country destination for a perfect spring day, it's hard to beat Salisbury. The little spot, just a few miles...

Advertisement

Hangin' With Haar: How Did CL&P Do After Sandy?

...