February 23, 2013
Over the past three months, Apple's stock has dropped 35%, falling from an all-time high of above $700 to its current price of around $450 per share. Apple currently trades at 10 times its trailing-12-month earnings and 6 to 7 times its forward earnings.
In this video, technology and telecom analyst Andrew Tonner talks about the reasons Apple still represents a good value, including customer engagement elements such as the "sticky experience" of the Apple apps "ecosystem"; lower price points in emerging markets, where it faces strong opposition from Google; and potential capital returns in the form of dividends backed by its $137 billion in cash on Apple's balance sheet.
There's no doubt that Apple is at the center of technology's largest revolution ever and that longtime shareholders have been handsomely rewarded, with more than 1,000% gains. However, after the company's recent backslide, down 35% from its high in September, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple and what opportunities are left for the company (and, more importantly, your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.