Where to Position Your Money
Thus given the current market conditions in the U.S. smartphone market, which, if any, of the highlighted companies present overall attractive investment opportunities?
Apple Inc. (NASDAQ:AAPL)’s top line is projected to rise from 2012’s $156.51 billion to 2015’s expected $195.01 billion, representing consistent 7%-8% year over year growth. Net income for the company is anticipated to decrease from $41.73 billion in 2012 to the anticipated $40.46 billion by 2015, representing -1% growth annually. Presently, the company holds a price to earnings ratio of 10.18, and pays out a dividend yielding 2.86%. In total, Apple Inc. (NASDAQ:AAPL) earns 5 out of 5 stars, and is a screaming buy on any considerable pullback.
Google Inc (NASDAQ:GOOG)’s top line growth is predicted to remain in the 22.5%-25% range annually through 2015, with revenue increasing from 2012’s $42.72 billion to $79.85 billion by 2015. The bottom line for the company is expected to grow in the 17.5%-20% range annually through 2015, with net income rising from 2012’s $10.74 billion to 2015’s anticipated $18.43 billion. The company presently holds a price to earnings ratio of 27.48, and does not pay out a dividend. Overall, Google Inc (NASDAQ:GOOG) earns 5 out of 5 stars, and is a strong growth play possessing sterling fundamentals.
Research In Motion Ltd (NASDAQ:BBRY)’s top line is projected to rise from 2013’s $11.07 billion to 2016’s expected $12.12 billion, representing consistent 2.5%-5% year over year growth. Net income for the company is anticipated to rise from -$646 million in 2013 to the anticipated $893 million by 2016. Presently, the company holds a negative price to earnings ratio, and does not pay out a dividend. In total, Research In Motion Ltd (NASDAQ:BBRY) earns 2 out of 5 stars, and is a fundamentally flawed company possessing unstable fundamentals.
Microsoft Corporation (NASDAQ:MSFT)’s top line growth is predicted to sustain in the 5%-7.5% range annually through 2015, with revenue increasing from 2012’s $73.72 billion to $89.95 billion by 2015. The bottom line for the company is expected to grow in the 15%-17.5% range annually through 2015, with net income rising from 2012’s $16.98 billion to 2015’s anticipated $27.45 billion. The company presently holds a price to earnings ratio of 18.38, and pays out a dividend yielding 2.58%. Overall, Microsoft Corporation (NASDAQ:MSFT) earns 4 out of 5 stars, and is a solid and stable long-term investment on any considerable pullbacks.
The Foolish Bottom Line
The U.S. smartphone market underwent considerable changes in the three months ending with April. These alterations can result in millions of dollars being lost for one company and millions of dollars being gained for another. Over this three month period, Apple Inc. (NASDAQ:AAPL) was the only major winner, gaining more than 1% in market share in both the OEM and platform categories. The importance of the smartphone industry is undeniable, and with changes constantly occurring in the industry, investors must be aware of the alterations, and position themselves accordingly.
Ryan Guenette owns shares of Apple. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple Inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG), and Microsoft Corporation (NASDAQ:MSFT).
The article How Are These Tech Titans Affected By Alterations in the Smartphone Landscape? originally appeared on Fool.com.
Ryan is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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