Amazon

[Grieve]

They both actually have very similar stock performance over the last 10 years, which is interesting. Apple has much better fundamentals over that time, but I would cautiously agree with you that they MAY be more risk to Apple's model than Amazon's. The problem with Amazon is that they don't make a lot of money, plus I think they will be less appealing once everyone has to pay state sales tax on whatever they buy. And giving stuff away at a loss to generate content sales is always a risky model.

Really, I think the best thing about Apple as a company, from an investor standpoint, is their staggering profit margins. What makes me nervous is that they aren't using that enormous profit margin to grow or diversify.

I'd say that's exactly what they are doing. For their first 25 years they did computers and pretty much nothing else. In the last 10 or so they've moved into the music business (iPod), the phone business (iPhone), tablet computers (iPad), the book business (iBooks), and mostly likely the TV business later this year. If that isn't growth and diversification, I don't know what is. Certainly compared to Google, who still get something like 99% of their money from search.

I have a feeling right now money is coming out of Apple and other tech companies because of Facebook IPO mania (people cashing in positions to buy FB stock). I think once that burns out, they will roar back and head for $1000.