#apple capital allocation

[macdailynews]

Apple has a problem: They’re too good at making money

Apple has a problem: They’re too good at making money

“Apple has a problem. They’re too good at making money,” Michael Batnick, CFA, Director of Research at Ritholtz Wealth Management, writes for The Irrelevant Investor. “Their most recent quarterly statement revealed that they are sitting on $38 billion in cash and cash equivalents.” Apple Park in Cupertino, California Michael Batnick for The Irrelevant Investor: If we expand our definition of…

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[macdailynews]

Investors might soon find out what will Apple do with its mountain of cash

Investors might soon find out what will Apple do with its mountain of cash

When Apple reports earnings on April 30, AAPL shareholders will be looking for an update on the company’s plan to shift to a zero net cash balance sheet, including what the dividend will be for the next 12 months and how Apple plans execute stock repurchases.

Eric J. Savitz for Barron’s:

While most of the focus will be on the company’s supply-chain and consumer-demand issues connected with the C…

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[macdailynews]

Apple made a record $24 billion in stock buybacks during June quarter

Apple made a record $24 billion in stock buybacks during June quarter

Daniel Eran Dilger for AppleInsider:

Since 2012, Apple has been buying back shares at the extraordinary rate of around $10 billion per quarter. A year ago it picked up the pace to around $20 billion per quarter. After a reprieve in the March quarter, the company has resumed its buyback frenzy with its largest-ever quarterly funding: $24 billion in the June quarter.

But why is Apple buying back…

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[macdailynews]

J.P. Morgan: Apple's China issues 'somewhat overblown,' services underrated

J.P. Morgan: Apple’s China issues ‘somewhat overblown,’ services underrated

Malcolm Owen for AppleInsider:

Investor concerns about Apple’s fortunes in China are “somewhat overblown,” analysts from JP Morgan suggest, with shareholders also accused of failing to see the potential revenue generation of Apple’s Services arm.

JPMorgan is lowering its near-term forecast for iPhone shipments as part of a wider outlook for global smartphone shipments as a whole, an investor…

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[macdailynews]

Apple has made huge progress toward its 'net cash neutral' goal

Apple has made huge progress toward its ‘net cash neutral’ goal

”In early 2018, just a couple months after tax reform was passed, Apple CFO Luca Maestri outlined a new goal that the company would be pursuing over time: getting Apple’s capital structure to ‘net cash neutral,'” Evan Niu writes for The Motley Fool. “That target entails reducing the company’s net cash, which includes its total cash as well as total debt, down to $0. Apple had finished 2017 with…

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[macdailynews]

Apple's $130-billon problem: Zero-cash goal could be a cause for concern in a few years

Apple’s $130-billon problem: Zero-cash goal could be a cause for concern in a few years

[cfsp key=”getamac.jpg”]”Apple has a $130-billon problem, and it could impact the company’s stock down the line,” Tiernan Ray writes for Barron’s. “The tech giant has said it plans to reduce its net cash position to zero, a process that could take several years to address. The question is what happens then, and what happens on the way to that event?”

“A very large acquisition seems unlikely for…

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[macdailynews]

Apple cash neutral: Smart capital allocation or corporate gimnick?

Apple cash neutral: Smart capital allocation or corporate gimnick?

“Apple is sitting on mountains of cash in its balance sheet with a net cash position of $163 billion. In addition, the business generates over $52.3 billion in free cash flow per year,” Andres Cardenal writes for Seeking Alpha. “With the new tax legislation allowing the company to repatriate cash held overseas at a conveniently low cost of 15%, management has already indicated that it will become…

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[macdailynews]

The Apple cash FAQ

“How much cash does Apple have?” Horace Dediu writes for Asymco. “To the nearest million, as of the end of September 2017, Apple’s cash and investments totaled $268,895,000,000.”

“Note that this includes investments in the form of short- and long-term marketable securities. Long-term marketable securities are not always accounted as ‘cash’ because strictly cash is considered a liquid…

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