“Warren Buffett had said ‘Be fearful when others are greedy and greedy when others are fearful,'” Alec Eiber writes for The Motley Fool. “This may be the perfect example of Buffett’s quote put into practice, buying when others are fearful.”
“Let’s look at the facts: Since 2008, Apple revenue has grown 380%, net income has grown 760%, operating cash flow has increased 430%, and Free Cash Flow has grown 370%. Apple is the epitome of a growth stock, and the Street thinks the growth is over. I think it isn’t,” Eiber writes. “In Apple’s recent quarterly release, CEO Tim Cook hinted at new products in software and hardware in the fall. Short-term investors may be disappointed with the fact that no updates will be released until then, but long-term shareholders will see the stock react to the new innovation.”
Eiber writes, “The stock is beaten down and the Street is fearful that the company won’t be able to innovate. If history has told us anything about the company, it will continue to innovate (Cook has already said they have products in the works) and the stock should rebound.”
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