Apple Inc. (AAPL): Earnings Did Not Change a Thing

Is it really that bad?
To be clear, I still own quite a bit of Apple shares, and intend on holding them for the time being. I’m trying to temper my impatience for proof of innovation in the post-Jobs era, and can’t deny that the capital moves are nice (at least in the short term).

In the long term, what we could be seeing is Apple moving into a category Microsoft Corporation (NASDAQ:MSFT) investors had to endure a decade ago. The stock moved from being a growth stock, to an income and value stock. That’s not necessarily a bad thing, as dividends do make quite a difference — doubling the return of the investment.

MSFT data by YCharts.

One things Microsoft has, however, that Apple doesn’t, is a more sustainable competitive advantage in terms of its Office Suite, which is far stickier than the iOS ecosystem.

So, for me, what it all comes down to is this: Without evidence of continued innovation at Apple, it’s simply not the same company that I bought into a few years ago. That doesn’t mean it’s a bad investment per se, but it needs to be re-evaluated (as all stocks do) based on the fact that it’s more of a good stock than a good company.

I’ve already begun my re-evaluation, so stay tuned if you’d like to see how it plays out.

The article Apple’s Earnings Didn’t Change Anything originally appeared on Fool.com.

Fool contributor Brian Stoffel owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and Microsoft.

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