Apple to the Core
Has Apple turned into forbidden fruit, or is now the time to take a bite?
Once every investors favorite stock, Apple has fallen out of favor on Wall Street and Main Street. It's stock is down more than 42% from its high of $750 a share. It's recently been trading well below $400 a share. Simply put its upward momentum is broken.
Reasons from pundits include the death of co-founder Steve Jobs, fierce competition in tablets, phones and laptops. Its profit margins are lower and it has a lack of new sexy products it can hype to get consumers excited again. But Apple still has an incredible $137 billion in cash on hand.
Many critics say Apple can break out of its downdraft and woo back investors by giving some of that cash back to investors in the form of increased dividends. And it needs to get back to innovation; something the late Steve Jobs did so well.
What's next? We'll find out Tuesday when Apple reports its quarterly earnings.