Should you invest in Apple?

The company reported a strong quarter Wednesday, sending shares skyward.

By Motley Fool Investor Beat Apr 24, 2014 6:29PM
Shares of tech giant Apple (AAPL) closed up 8.2 percent Thursday after it announced a strong quarter.

The highlight of the report was the iPhone, which saw unit sales of over 44 million compared to estimates of around 38 million. The company also increased its capital return program from $100 billion to $130 billion, most of which will be in the form of a share repurchase program.
But where will sales of the iPhone go from here? On Thursday's Stock of the Day, Motley Fool analyst Evan Niu thinks the future looks bright for Apple's hit product. Caption: Apple announced the iPad Air today
Credit: © Courtesy of Apple

The iPhone 6 will be released later this year, and he thinks that will help the company capitalize on the growing trend of larger phones. Meanwhile, Apple continues to see great success in emerging markets with the sale of its iPhone 4S, which as Evan notes is now three years old, indicating the strength of the Apple brand.

So should investors get in on the action? Overall, Evan is a perma-bull on the company, and Apple itself is confident in its future given the increasing share repurchase program. The case can be made that the company is reasonably valued, and with a strong quarter in its back pocket now may be a good time to invest.

The Motley Fool's 12 top stocks for 2014 are now available! So if you're tired of picking stocks out of a hat and hoping that one skyrockets, check out Stocks 2014: The Investor's Guide to the Year Ahead. It's The Motley Fool's current top report, and includes Chief Investment Officer Andy Cross's top stock for 2014! This under-the-radar company is the secret winner in the war for the last precious drops of oil on the planet. Find out what it is and how you can take advantage of this unseen company's huge profits in this special, free report, just click here now.

Tags: AAPL
Apr 25, 2014 10:15AM
It's probably a good time to buy 14 shares and wait for  the 7-1 split and see if those resulting 98 shares don't go to $80-90 PS.  That's short of the $700 old shares or $100 for new shares but new products could push Apple's fortunes back up.  Nothing ventured, nothing lost or gained.
Apr 25, 2014 8:00AM
"The highlight of the report was the iPhone, which saw unit sales of over 44 million compared to estimates of around 38 million. The company also increased its capital return program from $100 billion to $130 billion, most of which will be in the form of a share repurchase program."

Well the Highlight should have been how Apple still refuses to get away from Slave type Wages. Their New Market in China, Apple better hope and pray that Folks there don't get a clue and fast about the insanity of buying a overpriced Phone from anyone. So far, way too many Consumers have been dumb about that.

"Tim Cook, you sir are no Steve Jobs."

Heck, Steve Jobs wasn't the mythical Genius that some folks continual try to sell everyone. This is the same Jobs that was kicked from Apple and nearly sent it into Bankruptcy. If not for the huge infusion of Cash from MSFT and the okay to use Office, that might still have been the Case.

What Jobs did do, make sure they had the intellectually rights so that others whom could build better products to compete against them, Could NOT. Witness the ongoing battle with Samsung. Cook is being unduly criticized. He has done a excellent JOB considered the overpriced Products they are currently selling when in fact much cheaper products can effectively do the same. Only a moron would tell you otherwise.

In a World were Global Poverty and DEBT is Soaring, the FACT that Apple has still been able to sell Folks such overpriced products is literally a Miracle. However those same FACTS should make everyone nervous about Apple's future longer term as anything other then a slow growth value stock.
Apr 24, 2014 8:38PM

I am not one of the zombies to drink the koolade dispensed by one Tim Cook.

In a terrific PR move, he covered all bases. Cheap stock with blowout numbers, and the cherry on top: a 7 for 1 split. A promise of "incredible new products".  R&D, they had tripled in size.

I wanna love it. But look at the tea leafs.  

Tim Cook, you sir are no Steve Jobs.

They buy a synthetic sapphire company for the holy grail: an unbreakable screen under $30/unit. REALLY? Do you think Corning is going to take this sitting down? I've worked in R&D long enough to know they have more defensive patents and apparently nobody looked into that?

Iphone6. Hmmm. Amazon is coming out with their own phone with 3D screen (sans glasses).

The worldwide consumer has iOS in a headlock. Android will plant them under in 3 years.

WHAT possible new gadget can convincingly supplant the death of Jobs which, after all, is STILL the big question looming out there.

Mr Cook, wear you black shirt and jeans, but I am thoroughly convinced you are nothing like Steve Jobs. He only picked you because he thought you would do everything the way he did. Fact is, you were just a brown nose and your face will be covered in it within a year.          

Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.


StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

124 rated 1
266 rated 2
452 rated 3
702 rated 4
671 rated 5
604 rated 6
640 rated 7
495 rated 8
267 rated 9
158 rated 10

Top Picks




Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.