Forget Apple; Microsoft Is a Better Growth Stock
Finding a good growth stock is key for investors who are looking to plump up their portfolios. Dividends can be helpful, of course, but there's no substitute for a high-flying growth stock. Here is a close look at two of the top tech stocks: Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). While there's no denying that both are great long-term investments, the edge in terms of growth has to go to Microsoft.
Apple used to be the hot growth stock on the NASDAQ. However, since the death of Steve Jobs, the company has been on a different trajectory. While it has still been upgrading its products and adding value for consumers, it's not the leader as far as developing new and exciting products anymore. It's become a solid value stock and an option for dividend investors looking for some recurring income, but as far as a growth stock goes, there's a lot to be desired from the company.
In its most recent earnings report, the company's sales rose by a modest 1.8% from a year ago. And while it did see growth in many segments, iPhone sales, the company's bread and butter, were down 9%. That's why it wouldn't be surprising if Apple were to unveil a cheaper iPhone next year in the hopes of jump-starting sales in 2020. The problem, however, is that at a lower price point, it'll take more volume to generate a significant amount of revenue and it'll also result in smaller profits as well.
Source Fool.com
