Should You Invest in Apple Inc Today?

Shares of tech giant Apple  (NASDAQ: AAPL  )  were up over 7% today after it announced a strong quarter. The highlight of the report was the iPhone, which saw unit sales of over 44 million compared to estimates of around 38 million. The company also increased its capital return program from $100 billion to $130 billion, most of which will be in the form of a share repurchase program. 

But where will sales of the iPhone go from here? On today's Stock of the Day, Motley Fool analyst Evan Niu thinks the future looks bright for Apple's hit product. The iPhone 6 will be released later this year, and he thinks that will help the company capitalize on the growing trend of larger phones. Meanwhile, Apple continues to see great success in emerging markets with the sale of its iPhone 4S, which as Evan notes is now three years old, indicating the strength of the Apple brand.

So should investors get in on the action? Overall, Evan is a perma-bull on the company, and Apple itself is confident in its future given the increasing share repurchase program. The case can be made that the company is reasonably valued, and with a strong quarter in its back pocket now may be a good time to invest.

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  • Report this Comment On April 24, 2014, at 3:44 PM, WineHouse wrote:

    Huh?

    One of the two authors to whom this article is attributed, Evan Niu, is the analyst whose Motley Fool "stock of the day" analysis is being analyzed in this article. That in and of itself is weird, weird, weird (am I the only one who noticed)?

    Even more weird, the author(s) of THIS article wrote, by way of discussing the article that one of them wrote not too long ago, "Overall, Evan is a perma-bull on the company, and Apple itself is confident in its future given the increasing share repurchase program. The case can be made that the company is reasonably valued ..."

    This is damnation via the use of faint praise, to put it mildly. "The case can be made that the company is reasonably valued ..." -- if -- IFFFFF -- a company is actually reasonably valued at its present market cap valuation, then why would anyone want to buy it right now? My understanding is that one should seek out undervalued companies, so that the stock price can reasonably be expected to go up once everybody else catches on to the true value of the company. If it's reasonably valued today, then the thing to do is wait for the dips before buying.

    I have seen weird articles before, and dumb articles, but this one has got to be a model for future articles of its type.

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