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At $400, Where Does Apple Go from Here?

In this video, analyst Andrew Tonner talks about Apple's current situation. Even though the stock sits just below $400, he has three reasons he's bullish on Apple:

  • Its dividend, which sits at 2.5% and is likely to be raised in its upcoming earnings report. With its $137 billion cash pile, it could keep increasing dividends in the future.
  • The likelihood of an upcoming lower-cost iPhone, which could help Apple break in to new markets and boost revenues.
  • The company's upcoming next-generation product -- a smart watch or a smart TV, which could arrive sometime next year also also drive revenues.

For more details, check out the video.

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, 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 (5) | Recommend This Article (2)

Comments from our Foolish Readers

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  • Report this Comment On April 20, 2013, at 8:38 PM, DanManners wrote:

    I wish you were right Andrew but I have bad news for you. Tim Cook is not coming out with an Apple TV anytime soon. And even if it did it would not add $ 18 to the earnings.

    TVs are dropping in price everyday. Sharp is dying. Sony is almost dead. Only Samsung is thriving because they have put out the set that Apple was supposed to put out 2 years ago.

    Cook said he is looking at TV. That means 10 years until he does anything. He cant even launch a new iphone. When you watch a movie set in California, will the Golden Gate bridge look collapsed. The TV will have so many issues. Just like the map ap which was a disaster. Apple is dying and no TV is coming out. No watch or CHina Mobile deal. The stock is on its way to 300 and lower. Auerbach Grayson's top analyst Richard Ross said Apple is going to 313. 20% more downside. And that is being optimistic.

    Apple is a falling knife and after this earnings and the June 2013 qtr earnings in July Apple will be well below 300 as the earnings will be a disaster.

    Margins, ASP and stock price are all tumbling. Hey Cook had no chance. He is no Steve Jobs. Look at how Ron Johnson fared at JCP. Scott Forstall with Maps ap. Both got fired.

    Apple is destined to keep going down. I predict it will not ever rally again. I predict it will never be over 400 again. I predict it will be below 350 next week and by July below 300. I predict by next year it is below 200. It could have 500 billion in cash and it won't help. Blackberry has more cash percentage wise than Apple. Doesn't matter because the cash coming in is going to dry up and they will need that cash to survive.

    When Cook gets fired the stock will rally. I see a 2016 stock price of below $ 100 and dropping until it hits zero. Cook is the best CEO to see this happen.

  • Report this Comment On April 20, 2013, at 9:20 PM, PaulApp wrote:

    DOWN! Any more question?

  • Report this Comment On April 20, 2013, at 9:23 PM, PaulApp wrote:

    Apple has suppliers issues and thousands other problems! Until Apple can find the CEO that can identify those problems, its stock will continue to go down!

  • Report this Comment On April 20, 2013, at 10:19 PM, JT1951 wrote:

    Tim Cook has been running Apple for a couple years while Steve went through numerous medical issues. Some of Apple's best quarters were under his watch. He is a better manager than Steve was though Steve was the deal maker and idea man. There are still a couple years of "Steve Pipeline" before Tim and Jony have to rely only on their ideas.

    Apple makes the best selling phonr and tablet worldwide. Their products are the Porsche of mobile tech...... Samsung is the Toyota. Both will prosper.

  • Report this Comment On April 20, 2013, at 10:47 PM, techy46 wrote:

    Apple's at $27 PS, subract 146 from 390 aqnd divide by 9 to adjust to MSFT compariable, and MSFT is at $30. Let's see this quarters earnings and then will probably see Apple go back to $35 PS or $461 when multiplied by 9 and adding back cash. When new products come out that beat Samsung then it'll be back to $500-520.

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