Down 25%: What's Wrong With Apple?
In the video below, Motley Fool tech analyst Andrew Tonner takes a look at the recent movement in shares of Apple . The stock is currently trading 25% off its 52-week high, but Andrew believes that the skeptics are wrong.
The reasons for Apple's share price decline do not have anything to do with the long-term investment thesis for Apple. As Andrew notes, tax selling may be contributing to pressure on the shares; with the stock up 35% during 2012 and significantly more over the longer term, investors may have felt pressured to sell shares while capital gains tax rates were lower before the fiscal cliff. Vague discussion by analysts of technical issues and whether Apple's products are no longer in vogue are typically not supported by any real substance and focus on a short term mentality.
The fundamentals for Apple have not changed. New products, including the latest releases of the iPhone and iPad, are providing growth this holiday season. Meanwhile, the stock remains cheap from a valuation perspective and Apple's growth characteristics continue to remain a bright spot for investors with a long-term view.
What's inside Supernova?
Apple has been a longtime selection of Motley Fool co-founder David Gardner, helping lead his stock picks to gains of more than 120% in our Stock Advisor service since it launched in March 2002. Compare that to the S&P 500's return of 29% over that same time frame. David has managed to trounce the market by always being on the lookout for revolutionary stocks and recommending them before Wall Street catches on to their disruptive potential. If you're interested in how David discovers his winners, click here to get instant access to a personal tour behind David's Supernova service.
The article Down 25%: What's Wrong With Apple? originally appeared on Fool.com.
Andrew Tonner owns shares of Apple. The Motley Fool owns shares of Apple, Google, and Intel. Motley Fool newsletter services recommend Apple, Google, and Intel. 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
