Ask a Fool: Stay Long on Apple Stock?

In the following video, Motley Fool Million Dollar Portfolio advisor David Meier takes a question from a Fool reader on Facebook, who asks: "I've been long on Apple (NASDAQ: AAPL  ) , and I'm still long. Is this the right decision in your Foolish opinion?"

Apple has a history of cranking out revolutionary products... and then creatively destroying them with something better. Read about the future of Apple in the free report, "Apple Will Destroy Its Greatest Product." Can Apple really disrupt its own iPhones and iPads? Find out by clicking here.


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Comments from our Foolish Readers

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  • Report this Comment On July 12, 2013, at 8:43 PM, DanManners wrote:

    I love your optimism. But be real not foolish. Apple is going lower.

    David Trainer who has to be the greatest analyst today said Apple is going to $ 240. He is wrong. It is going much lower. Ok I know you hate me but listen.

    Everyone is so hot on Apple going to $ 500.

    But everyone will be surprised to see Apple below $ 300 by the end of the year.

    Why you ask?

    Missed earnings. Now and in November.

    Compressed p/e. Compressed margins.

    Boring, old fashioned, small screened iphone. Did I say boring. Forget iWallet crap. People are not going to buy it. They will buy the older ones for less money.

    Reviews of Apple iPhone5s ( will say things like this: Better maps but nowhere is it close to Google Maps. Now the Brooklyn bridge wont show as collapsed but it could show it hovering over Utah.

    No new product this year.

    Boring iPad upgrades. No retina screen for iPad mini.

    Constant bad news about this company. With each launch my office has a pool where we try to guess how many apology letters Cook will have to write.

    No China Mobile deal ever

    No iTV other than the present hockey puck one

    No iWatch. Cook said kids wont wear one. Not in the cards. Another iTV endless rumour.

    No buybacks yet but more dilution.

    No cheaper iPhone as Apple doesn’t do that.

    People know that Cook will never get replaced no matter how low the stock goes. The stock will be at 240 and he will be there saying next year. This removes any hope that Apple will recover.

    Once the cash starts drying up and at earnings the amount is smaller and smaller, that will help crash the stock price.

  • Report this Comment On July 12, 2013, at 9:19 PM, skippywonder wrote:

    Wow Dan, your prediction will be fun to come back to.

    You know buy backs have already started, right? The have been going on every day for weeks.

    China Mobile deal is coming WITH the new plastic iPhones. iWatch is a strong possibility.

    It is pessimism like yours which will propel AAPL higher when they do start generating improved earnings again. So many people think Apple can do nothing right that good news will be met with much upside surprise.

  • Report this Comment On July 12, 2013, at 10:14 PM, Jon408 wrote:

    Let's make it very clear; Apple is going higher. Perhaps not today or tomorrow, but soon, and for the rest of our lifetimes.

    Someone, who has to be an idiot, said Apple is going to $240. He is dead wrong. It is going much higher. Just listen.

    Not everyone understands this, but Apple is going to $600, then $800, then $1,200 and so on, into the future.

    And some people will be surprised to see Apple above $600 by the end of the year. Why you ask?

    More market share, in tablets, phones, computers, and music, and an understanding by the general public that quality matters. It matters a lot.

    The earnings by themselves will matter to a few, but just as Amazon is seen "taking it all", so Apple will finally be revealed as having usurped MSFT, Samsung, P, and others by simply making better products that are better integrated (with each other and with the cloud), yet better supported, both online, and locally, with people who actually care about their customers. Because they ARE the customer! Apple's support centers are located in each country of service, with native speakers, who are talking to their own people in their own language, saying things they understand. How simple can that be, and yet Samsung, Dell, MSFT, and others still don't get it. Crazy!

    People are absolutely fed up with gimicky smartphones that have tons of features that almost work and are difficult to use. Samsung has already felt the sting of that (check out their stock chart), and it's going to get a lot worse... Nokia, Blackberry, and Apple have it right and Samsung doesn't even have a clue. It isn't about price, it's about quality, usability, and support. It isn't about price. It has NEVER been about price.

    Reviews of Apple iPhone 5s show that the map issue was resolved about six or eight months ago, and that anyone using the current OS has a map service that is actually better than Google maps. And that will keep evolving, because Apple will get it more than right.

    New products are already being shipped. In particular, the new Apple Macintosh. And the Pentagon is buying Apple computers, as is the Navy and the Air Force. It's the only computer used in the White House.

    iPad upgrades support the customer with ease of use - not problematic apps that crash over and over. A retina screen for iPad mini is on the way. Not announced yet, because Apple doesn't do that. They like to surprise people with good stuff.

    Constant good news about this company... Cook has the wisdom and courage to confront problems and fix them. Something most other CEOs would NEVER do in public. Look at the Greenpeace issue, or the employment issue in China. He went to China to straighten it out. When did Steve Balmer go anywhere to straighten anything out?

    The China Mobile deal will come when all the pieces are in place. They are probably about three months out at this point.

    I agree that there will probably be no iTV, which is a good thing. Apple doesn't make refrigerators, either. Good for them.

    iWatch? Probably just wishful thinking, but if they do come out with such a device, it will probably do a lot more that anyone expects.

    The stock buybacks Cook announced changes the game. They put Apple on record (legally), saying that there will be no more dilution. Dilution is over, because the buybacks are designed to counterbalance all stock options.

    A less expensive iPhone for China and India will probably be limited by language. If you speak and read Hindi, great... otherwise, why would you buy it? So it won't impact Europe or the Americas. It will be a targeted product, based on language. Pretty simple, eh? Some would call it genius. Oh yeah - Apple!

    Cook is doing a great job, even though he isn't Steve Jobs. Thank goodness he isn't. Genius is great, but difficult to live with at home (paraphrased quote attributed to Joan Baez about Bob Dylan from her Diamonds and Rust album).

    Apple's cash flow is so massive and increasing at such a rate that the investing community has a difficult time even understanding the magnitude of it. Apple makes something like 63% of the profit of the entire PC and smartphone manufacturing industry. Yep, including Samsung, including HP, including Dell, including Nokia... (but no, not including MSFT - yet... that's coming later).

    So where in the world is Apple's stock going to go? Up. Not today perhaps, or tomorrow, but soon, and for the rest of our lives.

    Quality matters, and it matters a great deal more than most of the "pundits" realize. Even a child of ten can figure out that an iPad is easier to use than a Kindle. That same person, twenty or sixty years older knows that the Apple OS if FAR easier to use (and does more, faster), than the cheap imitation knockoffs called Windows and Android.

    Game over: Apple. The world just doesn't know it yet.

  • Report this Comment On July 12, 2013, at 11:24 PM, TonyXYZZ wrote:

    Let's not forget, Innovation at Apple was driven primarily by Steve Jobs. Remember what happened to Apple when the Jobs left first time? ...and what happened to Apple's stock after his return! Writing is on the wall....without Jobs, Apple stock will keep on tumbling!

  • Report this Comment On July 12, 2013, at 11:36 PM, PocketsX wrote:

    Jon.....couldn't agree more. I will be cashing in my 300 shares of apple in 30 years when I retire and buy myself something nice !!!! ;)

  • Report this Comment On July 13, 2013, at 12:45 PM, deasystems wrote:

    @TonyXYZZ: Let's not forget, innovation at Apple was running wild until Jobs got the thing under control and insisted on focus. His successors have not forgotten that lesson.

    Jobs did not drive innovation, he drove discipline and focus.

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