Why Apple -- and Its Suppliers -- Are Still a Buy After Tonight's Blowout Earnings (AAPL)

Why Apple -- and Its Suppliers -- Are Still a Buy After Tonight's Blowout Earnings

Apple released tonight what Motley Fool senior technology analyst Eric Bleeker describes as "one of the most staggeringly impressive quarters in the history of American industry." The company just produced higher profits -- $13 billion -- than the $10 billion in sales Google produced all of last quarter.

Still, the question that's on most investor's minds has to be "how much bigger can Apple get?" Eric Bleeker believes that the momentum is set to keep rolling. Apple has used growth in China in previous quarters to produce mind-boggling growth rates, but last quarter it managed to turn the tide on Android and execute in the Americas like never before. With roll-outs to China and many other emerging markets just hitting next quarter, Apple's poised for a follow-up blowout. That's great news for Apple, and points to continuing success for key suppliers like Cirrus Logic, which should be soaring tomorrow as well.

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The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Eric Bleeker and Jeremy Phillips own shares of Cirrus Logic. The Motley Fool owns shares of Cirrus Logic, TriQuint Semiconductor, Apple, and Google. Motley Fool newsletter services have recommended buying shares of Apple and Google. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.

Report this Comment On January 24, 2012, at 9:01 PM, jdwelch62 wrote:

I'd been reading for a while that AAPL was priced around $500 to $520 by a number of "experts", so I got in when it was just above $400 in early November (it's amazing how few shares that turned out to be), and then bought some more on a surprising pullback later in November. So I'm stoked, and I think Eric is right about 2012, but I'm not so sure tomorrow is the right time to jump into Apple. I'd wait for someone in Europe to fart again and panic the sell programs into a pullback, and jump in then. But keep an eye on Apple; I'm still not sure they can innovate on their own without Steve Jobs past what ideas I'm expecting he left for them in the pipeline to work with, which should hold them for 3 or 4 years, maybe 5, but beyond that... We'll see...
Fool on!... :-)
Report this Comment On January 25, 2012, at 3:51 PM, TMFRhino wrote:

Probably a good call... I'm a terrible market timer in general :).
LOL, I've used that EXACT same phrasing before "Eh, I'll just wait for someone to fart in Europe and cause a panic..." Wow...
In any case, definitely need to be careful on CRUS... It can get pulled back *very* hard being in the cyclical semiconductor industry if Europe. If you're not entirely sold on it, its a great watchlist candidate since it would very, very likely be a "baby out with the bathwater" candidate if the market turns back.
-Eric

updated 1 day ago Sponsored by:
	DOW	12,454.83	-74.92	-0.60%
	S&P 500	1,317.82	-2.86	-0.22%
	NASD	2,837.53	-1.85	-0.07%

AAPL	$562.29		-3.03	-0.54%
Apple		CAPS Rating:

TQNT	$5.37		+0.07	+1.32%
TriQuint Semicondu…		CAPS Rating:

GOOG	$591.53		-12.13	-2.01%
Google		CAPS Rating:

CRUS	$27.45		+0.29	+1.07%
Cirrus Logic, Inc.		CAPS Rating:

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Why Apple -- and Its Suppliers -- Are Still a Buy After Tonight's Blowout Earnings

Comments from our Foolish Readers

Report this Comment On January 24, 2012, at 9:01 PM, jdwelch62 wrote:

Report this Comment On January 25, 2012, at 3:51 PM, TMFRhino wrote:

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