Is Apple Too Big for Its Own Good?

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.

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At the time thisarticle 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.

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