Apple: The Lindsay Lohan of Tech

The Pew Research Center's Project for Excellence in Journalism conducted a yearlong study and found that 15.1 % of tech articles were primarily about Apple (Nasdaq: AAPL  ) . Google (Nasdaq: GOOG  ) was next with 11.4% of all tech stories, followed by Twitter (7.1%), Facebook (4.8%), and Microsoft (Nasdaq: MSFT  ) (3%). CitiBank (part of Citigroup (NYSE: C  ) ), AT&T (NYSE: T  ) , Comcast (Nasdaq: CMSCA  ) , and Research In Motion (Nasdaq: RIMM  ) were next in line -- all well under 1%.

So Apple is the Lindsay Lohan of the tech world, garnering an excessive amount of coverage. Why? Fool analyst Rex Moore says there are a couple of reasons:

  1. People are getting what they want. Former Apple CEO Gil Amelio said in his book, On the Firing Line: My 500 Days at Apple, that a New York Times staffer once told him they sell 3% more papers when they run a strong story on Apple. The Motley Fool gets more readers with strong Apple stories also.
  2. It's hard not to cover a continually innovating company. Apple has done thing like turn the telecom industry on its ears, and launches or updates revolutionary products on a regular basis. iPad, iPhone 4, antennagate ... it seems there's always something going on.

What does this mean for investors? It helps quantify in some way Apple's great intangible brand benefit. It's a high-risk, high reward situation: The stock price will continue to do well if the company keeps exceeding the high expectations set for it, but it could take a big hit if the business hits a couple of speed bumps.

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Fool analyst Rex Moore just added to Apple's total tech news coverage. Of the companies mentioned, he owns shares of Microsoft. Google and Microsoft are Motley Fool Inside Value recommendations. Google is a Motley Fool Rule Breakers choice. Apple is a Motley Fool Stock Advisor recommendation. Motley Fool Options has recommended a diagonal call position on Microsoft. The Fool owns shares of Apple, Google, and Microsoft. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Motley Fool has a disclosure policy.


Read/Post Comments (4) | Recommend This Article (8)

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  • Report this Comment On September 30, 2010, at 9:34 AM, sk8ertor wrote:

    Yes, Apple is like Lindsay Lohan. Always drunk (hazy smoke and mirrors OS), falling (dropped calls), and winding up behind bars (walled OS and App Store environment). Excellent analogy dear writer.

  • Report this Comment On September 30, 2010, at 2:35 PM, goalie37 wrote:

    Apple is a fascinating stock. The stores are always crowded, the balance sheet is excellent, and the valuation isn't too extreme. So why do I avoid it like the plague? I really can't put my finger on it. Despite the valuation, there just seems to be too much hype by the street. Ever watch "Fast Money" on earnings release day? They all act like a bunch of kids on Christmas (if that isn't a contrary indicator, then I don't know what qualifies.) It just can't be this great forever. Maybe I'm wrong.

  • Report this Comment On October 01, 2010, at 10:54 AM, stockpatterns wrote:

    According to http://www.beststockpatterns.com:

    RIMM going up !

    AAPL going down !

  • Report this Comment On October 01, 2010, at 3:40 PM, ikkyu2 wrote:

    That makes sense. Lindsay Lohan is constantly innovating, too - finding new and exciting ways to leverage her inner emptiness and despair into a life trainwreck of epic proportions.

    I see AAPL as considerably less dysfunctional.

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