Fuchs: Why doesn't biz media realize what Apple's doing?

TheStreet.com’s Marek Fuchs expressed frustration at the fact that the business media constantly forgets the fact that Apple always overpromises on its products and underpromises when projecting its earnings.

Fuchs wrote, “Of course, it’s easy to fool all the business media all the time. But what helps in this case is Jobs’ dual status as carnival barker for products and somber company spokesman. If you are geared up for the sales job, and then he and other corporate officials start going all conservative on future earnings and revenue, you are apt to take it at face value.

“But don’t you see? It’s two sides of the same coin.

“You are getting played, yo.

“Which wouldn’t be so bad — if the business media made it clear. Take Mayor Bloomberg’s little news outfit — puh-lease.

“In a story headlined ‘Negative Forecast Sends Apple Shares Skidding,’ Bloomberg led by letting readers know that the company cut forecasts for the current quarter. Not a word about how the company is addicted to cutting forecasts, using it as a market-managing tool. Interestingly enough, Bloomberg ends by letting readers know that Goldman Sachs dutifully cut its forecasts but raised its price target.

“Since business journalists either don’t have the knowledge base to translate such a transparent move by a Wall Street firm or can’t actually enlighten readers about it because they have to write under such strict on-the-one-hand-on-the-other-hand parameters, let me tell you what this move is called.

“It’s called a ‘cover your rear.’

“The Business Press Maven is pretty sure that Goldman knows the deal. They look silly if they don’t give guidance on the numbers and leave themselves exposed. But if they raise the price target, they are covered. Either way, they can be right even when they are also wrong.”

Read more here.