Is Apple Too Big for Its Own Good?

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The following video is part of our "Motley Fool Conversations" series, in which senior technology analyst Eric Bleeker and Chief Technology Officer Jeremy Phillips discuss topics across the investing world.

In today's edition, Eric and Jeremy reflect back on the fall-out from Apple's earnings on Jan. 25. One fascinating aspect of its earnings report was that Research In Motion's stock actually outperformed Apple's the next day, returning more than 8%, while Apple's gains were only 6%.

Another interesting aspect of Apple's earnings was that the company's P/E fell from more than 15 before earnings to less than 13 after! That creates a question: Who's left to buy Apple? As Eric says, that question has been around for more than a year, and in that time, the company has returned close to 40%.

Looking forward, one key catalyst left for Apple could be offering a dividend that brings in more income-focused funds and investors looking for yield. While investors often look down on Apple for its capital structure, it also presents a key catalyst for future gains.

Apple is an amazing company, but remember that it's just one way for investors to profit from the mobile revolution. The Motley Fool has just released a free report on mobile named "The Next Trillion Dollar Revolution" that details a hidden component play inside mobile phones that's also absolutely dominating the exploding tech market in China. Inside the report, we not only describe why the mobile revolution will dwarf any other technology revolution seen before it, but we also name the company at the forefront of the trend. Hundreds of thousands have requested access to previous reports, but you can be among the first to access this just-released report by clicking here -- it's free.

At the time this article was published Eric Bleeker owns shares of Cisco Systems. Jeremy Phillips has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Google, and Microsoft.Motley Fool newsletter services recommendApple, Google, and Microsoft. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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