Two Big Reasons to Sell Apple Inc. (AAPL) Stock Today

2. Where’s the innovation?

Apple has spoiled us over the past decade. The company had rollout after rollout of new or significantly upgraded products from 2001 to 2012, and Apple stock’s rise (eventually) followed suit.

Source: Apple.

But since the death of Steve Jobs, it’s been difficult to pin down whether the brilliance in innovation was due to one man, or if it had become something institutional.

I think the website Ad Contrarian has one of the most interesting views of how to tell if the innovative genius is still there. In it, the author contends that the quality of ads are a tell as to how the company is fairing:

The product pipeline will take years to screw up. But the ad pipeline can be screwed up in no time…the “ad pipeline” is now officially screwed up. Apple has two problems. First is that they have nothing to talk about. They haven’t produced anything of major interest to consumers in a long time. Second, they have lost their voice. They no longer know who they are. And neither do we.

How can Apple fix this?

In the end, there’s only one way Apple can fix this: by proving that they’re innovative. At today’s prices, I’m willing to stick around and see if the magic is still there.

But to prove themselves, Apple is going to have to do something that’s rarely attempted, and even more rarely successful: cannibalize its best sellers.

The article 2 Big Reasons to Sell Apple Stock Today originally appeared on Fool.com and is written by Brian Stoffel.

Fool contributor Brian Stoffel owns shares of Apple, Google, and Amazon.com. The Motley Fool recommends Amazon.com, Apple, Facebook, and Google. The Motley Fool owns shares of Amazon.com, Apple, Facebook, and Google.

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