Apple Finally Faces Some Competition

For what seems to be forever, Apple (AAPL) was the company that could do no wrong. Apple was the most widely touted stock from here to China. It was too risky not to own Apple shares. The icing on the cake came for me when I read an article about a group of individuals who had their entire life savings in Apple stock. I read that article about two or three months ago. Apple shares are down nearly 30% in the past several months.

Let me clear: Apple is a fantastic company that produces outstanding consumer products. When it reports earnings tomorrow, I suspect that its profits will be jaw-dropping. A year from now, Apple is likely to earn more money than it is earning today. Apple still remains the dominant leader in smartphones, and the iPad is the runaway tablet success. So why is such a company trading for $500, or 11x trailing earnings alongside a yield of 2%?...528 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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