The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics around the investing world.
Uh-oh! Apple missed its earnings estimate and reduced its quarterly guidance. But no, the stock did not tank. If it were any other growth company, the stock would be down more than 20%. But this is Apple. This isn't Nokia or Research In Motion. Apple generated $36 billion of sales this quarter and $157 billion for the year. Interestingly, Apple, like Hewlett-Packard, is also feeling the effects from a slowing PC industry, as units grew only 1% year over year. But its iPhone and iPad franchises continue to perform well. The stock still trades at an attractive price, despite the lower earnings guidance. And the company continues to make sure its product line is the best it can be. It has to, as Google wants to create its own ecosystem of hardware and software. Buying Apple on the dips will pay off over the long run.
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David Meier owns shares of Apple. John Reeves and The Motley Fool own shares of Apple and Google. Motley Fool newsletter services recommend Apple and Google. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.