The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics relating to their 10-Bagger portfolio.
Apple may have missed analysts' expectations, but it still beat its own guidance. Sales came in at $35 billion versus its own guidance of $34 billion. And earnings per share were $9.32 versus an expected $8.68. iPhone sales increased 28% to 26 million. Apparently that was soft. The explanation is that people are waiting for the iPhone5, which is expected in the fall. Regardless, Apple is still running circles around Nokia and Research In Motion. iPad sales, however, grew 84%, which is remarkable. With Google's Nexus 7 taking off and the iPad staying strong, David thinks Microsoft's Surface offering might be in trouble. Apple is, without a doubt, still worth buying. The iPhone5 is on the way, while the stock now trades at 13 times earnings. And earnings are expected to grow 56% this year.
Apple is the most influential company in technology right now and has delivered market-smashing returns for those lucky enough to invest in the company. However, with the impending release of the iPhone 5 and Apple TV on the horizon, the stakes have never been higher for the company. If you're looking for a recommendation on how to play Apple along with continuing updates and guidance on the company whenever news breaks, we've created a brand new report that details when to buy and sell Apple. To get started, just click here now.
John Reeves and David Meier own shares of Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft. Motley Fool newsletter services recommend Apple, Google, Microsoft, and Nokia. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.