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.
It was quite an October for the company from Cupertino. With the recent pullback in the share price, we're buying more for our real-money portfolio. First, Apple released, as expected, the iPad Mini, an 8-inch tablet designed to compete with Google's Nexus 7 and Amazon.com's Kindle Fire. Next, Apple reported a miss on earnings. Sales came in just fine, but margins contracted. Finally, CEO Tim Cook decided to shake up management following the lackluster launches of Siri and its Maps app, in addition to some head-scratching moves in its retail business.
With the pullback in price below $600, Apple is a great buy. Earnings guidance may be lower, but the company continues to dominate its markets. It will be interesting to see whether Nokia can turn itself around and if Microsoft's Surface becomes a player in the tablet market.
Ultimately, Apple has a strong balance sheet and a cheap valuation. That's why John and David are buying.
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David Meier owns shares of Apple. John Reeves owns shares of Apple and Google. The Motley Fool owns shares of Apple, Amazon.com, Google, and Microsoft. Motley Fool newsletter services recommend Apple, Amazon.com, Google, and Microsoft. 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.