An Opportunity In Disguise?: Apple Inc. (AAPL) Earnings Preview

Published on January 23, 2013 at 7:19 am by The Motley Fool in News

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In this way, Apple’s cost structure enjoys the best of both worlds. It uses its sheer weight to negotiate favorable hardware component costs while its software research and development costs scale naturally.

One of these is not like the other
There’s been a strange break between share performance and Apple’s underlying business over the past four months. While every day seems to bring a sell-off on any bit of remotely negative news, Apple’s fundamentals remain as strong as ever. In order for investors to sell Apple right now, they have to firmly believe that its growth story is over and its best days are behind it. That notion doesn’t line up with the fact that Apple will post an all-time record quarter in terms of revenue.

Apple is about to report its biggest top-line result in history, yet investors are losing confidence in its business? That discrepancy may inevitably prove to be an opportunity for investors looking for an entry point.

There’s no doubt that Apple Inc. (NASDAQ:AAPL) is at the center of technology’s largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool’s senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and more importantly, your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

The article An Opportunity In Disguise?: Apple Earnings Preview originally appeared on Fool.com.

Fool contributor Evan Niu, CFA, owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Microsoft. 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.