Avoid These 2 Tech Value Traps

The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.

Dell and Hewlett-Packard both reported earnings recently. Sadly, it has become clear that their business has become commoditized. The PC market is changing, and that is having a big impact. The companies can talk about global economic weakness, but that's not the problem. The problem is the world is changing and they can't adapt fast enough. Apple continues to lead the shift to mobile computing, and Dell and HP are simply stuck in a race to the bottom of the PC world. HP says it plans to offer a tablet again. Really? There's already no room in the low end for another tablet, especially with Amazon.com and Google breaking into the space. It's never easy to watch businesses go into decline, but that's where Dell and HP are headed, sadly. John and David see them as value traps, not turnaround opportunities.

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The article Avoid These 2 Tech Value Traps originally appeared on Fool.com.

David Meier owns shares of Apple. John Reeves owns shares of Apple and Google. The Motley Fool owns shares of Apple, Amazon.com, and Google. Motley Fool newsletter services recommend Amazon.com, Apple, and Google. Try any of our Foolish newsletter services free for 30 days. 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.

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