My Top 2 Stocks: Apple and Netflix

Apple (NASDAQ: AAPL  ) and Netflix (NASDAQ: NFLX  ) . You couldn't ask for two more galvanizing stocks than these longtime partners. One, Apple, is a market dog. The other, a market darling. 

Yet both stocks are worth owning at present levels. Apple has too much cash and far too much at stake to stop innovating. At the very least, we know the late Steve Jobs believed he "cracked the code" when it comes to interactive TV. All signs point to the Mac maker introducing a new type of screen, a revamped iTunes offering, or both, in the months ahead.

Meanwhile, Netflix burned shorts after reporting a stellar Q4 and has yet to look back. Its first real try at an original series, last month's House of Cards, is a hit as consumer use of the Internet for TV viewing continues to soar. Analysts are nevertheless modeling for just $0.16 a share in Q1 earnings, 30% below the high end of Netflix's guidance range.

Are the bears right about Apple? Are today's buyers taking an unnecessary risk owning Netflix? I address both these questions and more in the video below. Please watch, and then leave a comment to let us know what you think.

Apple and Netflix are my top two stock holdings, but Motley Fool co-founder Tom Gardner recently revealed his top two stocks as well.  For the names of that surprising pair of companies, just click here.


Read/Post Comments (7) | Recommend This Article (2)

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  • Report this Comment On March 14, 2013, at 2:28 PM, an12345 wrote:

    I agree with Netflix, not sure about apple

  • Report this Comment On March 14, 2013, at 7:10 PM, ernestjjr1 wrote:

    Ditto... Apple seems like an extended flash in the pan.. The competition came up on them very very quickly.... Netflix on the other hand raced for critical mass for subscribers to support the argument for content negotiations... It looks like they put growth ahead of profit, and by doing so, will be first, biggest and best... which will lead to explosion in value...

    Apple ... pass

    Netflix ... All in

  • Report this Comment On March 14, 2013, at 8:30 PM, sfbay13 wrote:

    Netflix can easily be overshadowed by another company that can get contracts with the big names. The technology is easy and does not provide any barriers to entry.

  • Report this Comment On March 15, 2013, at 3:52 AM, leedpack wrote:

    The last story I read here was that Amazon was going to 'swat netflix like a fly' Do you have a party line?

  • Report this Comment On March 15, 2013, at 7:38 AM, TMFMileHigh wrote:


    >>Do you have a party line?

    Nope. This is The Motley Fool, with an emphasis on "motley." We harbor a variety of viewpoints and dissent and debate among the writers and analysts is encouraged for one reason: it makes us all smarter about the stocks we're invested in.

    Thanks for writing and Foolish best,



    TMFMileHigh in CAPS and on the boards

    @milehighfool on Twitter

  • Report this Comment On March 15, 2013, at 7:41 AM, TMFMileHigh wrote:


    >>The technology is easy and does not provide any barriers to entry.

    If that were true, Amazon Instant Video and Hulu Plus would be available on just as many devices as Netflix. Instead, they lag badly.

    Thanks for writing and Foolish best,



    TMFMileHigh in CAPS and on the boards

    @milehighfool on Twitter

  • Report this Comment On March 15, 2013, at 4:26 PM, earlyseller wrote:

    As an original Howdy Doody viewer (ca. 1948), I took my first NFLX options profit this January and am now sitting on an AAPL leap gain. Since my ZIP position got zapped by AVIS, I will buy more NFLX and AAPL and wait for the "TV" to hit more than analog to digital wiping out VHS recorders.

    PS I am volunteering to write a TMF video style guide for some of the motleys who make presentations. i.e. a Fools Rules for Fools Orals so that mopes like me stop hearing "You Know" instead of the power of the pause. Sort of like the Market of stocks.

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