Why I'm Not Investing in Apple (but You Might Want to)

When it comes to pro-social investing, Apple's got some work to do. But given its dominant brand and extremely attractive valuation, you might want to ignore my caveats and jump in. Fool.com columnist Alyce Lomax is sticking to the sidelines. Where do you stand?

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 over 1,000% gains. However, 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 your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.


Read/Post Comments (10) | Recommend This Article (14)

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 Report this Comment icon found on every comment.

  • Report this Comment On March 13, 2013, at 9:18 PM, jordanwi wrote:

    How about any other consumer electronics company, if we're talking amoral?

  • Report this Comment On March 14, 2013, at 7:35 AM, kickbishopbrenna wrote:

    Apple big gain story looks over..its now a blue-chip earnings stock..don't think we can expect it to rocket as before, suddenly there are several boats on their ocean..no longer the lone leader. the one thing they have going for this stock is its slightly under-valued, it might recover in time, if it can re-invent its product attractiveness. have no apple products myself, always found them expensive and awkward to use, with a "disposable" shelf-life.

  • Report this Comment On March 14, 2013, at 7:11 PM, dwilh51183 wrote:

    AAPL WILL REGAIN STOCK PRICE AND MOMENTUM ONCE THEY ANNOUNCE A HUGE DIVIDEND INCREASE, ANNOUNCE A 30 BILLION STOCK BUYBACK, INTRODUCE 2 CHEAP QUALITY MODELS TO STEAL MARKET SHARE FROM KOREANS, AND SIGN UP CHINA MOBILE. DID YOU SEE WHERE CHINA MOBILE'S EARNINGS ARE STARTING TO DROP LIKE A ROLLER COASTER. PEOPLE IN CHINA WANT THE IPHONE AND THEY ARE LEAVING CHINA MOBILE FOR THE OTHER 2 CARRIERS. ALSO AAPL APPLIED FOR A 100 BILLION $$ LOAN AT A HUGELY REDUCED INTEREST RATE 1.25% TO BUY AN ADDITIONAL 50 BILLION OF STOCK AND DO MORE PRODUCT DEV AND BUY A FEW COMPANIES. THEY CAN PAY BACK LOAN EASY WITH MAKING 1 BILLION EVERY WEEK.SO BUY THE STOCK

  • Report this Comment On March 14, 2013, at 7:31 PM, wink71 wrote:

    @dwilh51183 I'm on it!!!!2

  • Report this Comment On March 14, 2013, at 10:24 PM, observerbob2013 wrote:

    Reality is that Apple will continue to fall until it announces a new earth-changing product.

    The I phone and I pad are yesterdfay's product and growth cannot happen without another such product.

    Without Jobs or a similar innovative leader the company will wallow in exactly the same way as Nokia has since it lost market leadership and all those wonderful fundamentals will melt just as quickly.

  • Report this Comment On March 15, 2013, at 10:05 PM, WineHouse wrote:

    Reality is that AAPL has been manipulated by hedge-fund CEO's for their own selfish motives ($$ in their pockets). First it was manipulated upward; then it was manipulated downward. The WSJ abetted by publishing unfounded rumors (that were later shown to be either false or misinterpreted).

    The only thing about AAPL that I've changed my mind about as a result of this nonsense is that AAPL may as well split its stock 5:1, since the reasons I originally considered valid for NOT doing so are clearly not valid. I've read post upon post from sheer idiots who put 100% (or more --- margined, for pete's sake!) of their total life savings into the stock and are now desperate. I used to think that the high price point would dissuade such imbeciles from "playing" with AAPL stock as if it were a penny stock, and clearly -- CLEARLY -- I was mistaken. So AAPL may as well split the shares, since the retail idiots are getting themselves involved because of the phony hype by market manipulators anyway, despite the high cost of the shares.

    BTW -- anybody notice Google share prices lately? Anybody notice a similarity?

    Duhhhhhhhhh......

  • Report this Comment On March 16, 2013, at 3:13 PM, fivemillion wrote:

    I feel Apple's direction has changed since 'Jobs' era. This company worked hard being a leader launching new innovative products - all be it old ones but much more human friendly - however now they have brought a smaller iPad and I hear they are working on a 'cheaper iphone', both of these products had already been launched. Has Apple become a follower instead of a leader? If so it will loose its edge in profitability

  • Report this Comment On March 16, 2013, at 8:36 PM, wjcoffman wrote:

    Apple's done being anything but a gadget manufacturer - oh, they don't do the manufacturing; what's left? With Job's passing went the innovation. I should've sold my substantial holdings (25 shares) $300/share ago. Maybe I'm holding out hope they'll start paying a regular dividend with all that cash.

  • Report this Comment On April 03, 2013, at 11:40 AM, Darwood11 wrote:

    Hi Alyce;

    Nice perspective.

    I am somewhat conflicted about AAPL, and I view the company as an oxymoron.

    However, I'd like to point out that many of us do invest via index funds and various mutual funds. I'm one of those and so, I do own AAPL.

    How much? I've used Morningstar's Xray tool to figure that out, with little effort (yes, I do realize that the underlying holdings of mutual funds might be a bit dated and therefor erroneous).

    The question for me is simply this. Will I add to those AAPL holdings by purchasing the stock directly?

    The answer is no.

  • Report this Comment On April 04, 2013, at 2:16 PM, Darwood11 wrote:

    i feel compelled to provide some insight into why I said "I will not buy AAPL" beyond my current holdings via index and mutual funds.

    1. I thing AAPL is a good company and certainly has real potential. Moody recently stated that the cash hoard could hit $170 Billion this year!

    2. AAPL has a good design team and a good management team.

    So what's the problem?

    Here is a company that shouldn't simply be "good" it should be exceptional. Yet, it seems to have decided that design and profit trumps all else. Sometimes profit seems to be in the driving seat.

    Using certain benchmarks, it's management team gets the same rating as Apache (APA) and GE and yet lags companies such as 3M, XOM, BDX and MCD.

    In other words, it's closer to being an AT&T than it is to being what it purports to be, and what some would believe it to be.

    That's not to say that AAPL won't go higher, and I think it's reasonable to assume it will double from here in a few years.

    However. in a field of thousands of companies, there are a lot of companies to invest in with "exemplary" management, good to great products, and a lot of equally great history.

    I vote with my money. I actively support companies that fit the mold that I have for my money. Currently, AAPL isn't one of them. Perhaps, the reader could consider my vote to be the "anti-hype."

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