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Is Apple About to Become Its Worst Enemy?

By Evan Niu, CFA and Erin Kennedy – Feb 23, 2014 at 10:00AM

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One Street analyst compares Apple's future to Microsoft's past. Will Apple be in store for a lost decade?

After a decade of bullishness, Barclays analyst Ben Reitzes has downgraded Apple (AAPL -0.34%) stock from "overweight" to "equalweight," tantamount to downgrading from buy to hold, though his price target remained fixed at $570. Reitzes sees the company as being all about the iPhone, with new product categories such as a smart watch or smart TV being unlikely to catalyze shares upwards. He also makes the unsettling comparison between Apple and Microsoft (MSFT -0.80%), which saw its share price remain largely flat for the decade following 2000.

In this video from Friday's Tech Teardown, Motley Fool tech and telecom bureau chief Evan Niu takes a look at Reitzes take on Apple today, and whether or not he sees Apple investors as being in for a slow decade ahead.

Erin Kennedy owns shares of Apple. Evan Niu, CFA owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Microsoft. 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.

Stocks Mentioned

Apple Stock Quote
Apple
AAPL
$142.16 (-0.34%) $0.49
Microsoft Stock Quote
Microsoft
MSFT
$245.42 (-0.80%) $-1.98

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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