Monday, June 18, 2012

Investopedia: Bull Vs. Bear - Apple's Growth Plays Are Drying Up

Question: Is Apple a good buy at today's price?

Bear's ResponseWhat Apple (Nasdaq:AAPL) has accomplished is truly remarkable. From a great growth stock to flirting with bankruptcy and/or a scrapheap acquisition, Apple has come roaring back to be the most highly-valued publicly traded stock on the market. Not only that, but Apple has essentially redefined the portable music player and mobile phone businesses and journalists and financial writers have made a cottage industry of trying to guess the next market that Apple will fundamentally upend.

But here's the thing - no growth story goes on forever. Apple has already shown some of the signs of a company transitioning to a more mature trajectory. There's a new CEO in place who is more manager than disruptor, the company has started to return capital to shareholders, and many analysts are no longer foaming at the mouth to project ever-higher price targets.

Those who think Apple is a still an outstanding buy today should consider the following risk factors:

Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2012/Bull-Vs.-Bear-Apples-Growth-Stunted-By-Stale-Operations-AAPL-GOOG-BBY-MSFT0615.aspx

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