Jun 19, 2013 - 02:48 PM EDT — AAPL: 426.11 (-5.66, -1.31%) | NASDAQ: 3423.555 (0.00, +0%)

Zaky: Apple’s mountain of cash could exceed $200 billion next year

Friday, June 1, 2012 · 1:58 pm · 20 Comments

“If you thought Apple had an absurd amount of cash on hand now, just wait until next year,” Seth Fiegerman reports for The Business Insider.

“Andy Zaky, an analyst with Bullish Cross, projects that Apple’s hoard will top $200 billion by the fourth quarter of 2013,” Fiegerman reports. “To put that in perspective, Apple had roughly $110 billion in cash and marketable securities at the end of March. So this would represent an increase of $95 billion (or 86%) over the course of the next six fiscal quarters.”

Read more in the full article here.

Philip Elmer-DeWitt reports for Fortune, “By the end of fiscal Q4 2013, Apple’s cash per share will represent nearly 40% of the stocks’ current trading value.”

Read more in the full article here.

[Thanks to MacDailyNews Reader "Dan K." for the heads up.]

Categories: News

Tags: aapl, Andy Zaky, Appel Inc., cash hoard, cash-on-hand, finance

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Comment Feed

20 Comments

Kone

Friday, June 1, 2012 - 2:10 pm · Reply

I think it’s possible. From now until the end of next year there will be at least 2 new iPhones, 2 generations of Retina Macs, a new iPad, a possible TV (among other things)
warbux

Friday, June 1, 2012 - 2:32 pm · Reply

Zacky + Dediu = $1000+ pps

http://www.asymco.com/2012/05/07/back-to-the-balance-sheet/
breeze

Friday, June 1, 2012 - 2:32 pm · Reply

Conservatively so.
Philippe

Friday, June 1, 2012 - 2:41 pm · Reply

Apple should buy back ALL of their shares with their cash and within a few years it will not have to report anything to anyone. With the next big worldwide crisis coming soon, it should not be too hard.
- tbone
  
  Friday, June 1, 2012 - 3:09 pm · Reply
  
  Apple cannot be privately held at this point. Too many employees.
  - nottrue
    
    Friday, June 1, 2012 - 3:35 pm · Reply
    
    Really? How many employees can a privately held company employ?
    
    I could find that Apple employs about 47,000 people in the US, but was unable to find how many they employ internationally, so I will just play devils advocate and double it and just for the sake of simple math, let’s round up to 100,000. I am sure that the actual number is nowhere near this high and would guess it will be closer to between 50,000 and 55,000, but it doesn’t really matter either as I will demonstrate…
    
    Bechtel Corporation has around 53,000 employees, which is about what I realistically GUESTIMATE Apple has worldwide and Bechtel is privately held.
    
    Perhaps Apple has split the difference between my pie-in-the-sky number of 100,000 and their 47,000 US based employees… That computes to about 70,000 employes (give or take).
    
    Koch Industries, Inc. has some 70,000 employees and they are privately held.
    
    Mars, the candy people, has some 70,000 or so employees and they are privately held.
    
    Hmmm… Okay, fine, let’s imagine my crazy 100,000 number is correct, shall we?
    
    Ikea (yeah, the people who sold you your furniture but made you put it together, has 127,000 or so employees and they are privately held.
    
    Cargill, Inc. has 142,000 employees and they are privately held.
    
    KPMG has some 145,000 employees and they are privately held.
    
    Publix Super Markets, Inc. has 146,500 employees and they are privately held.
    
    Ernst & Young has 152,000 employees worldwide and they are privately held.
    
    PricewaterhouseCoopers has over 169,000 employees worldwide and they are privately held.
    
    Deloitt and Touche has 182,000 employees and they are privately held.
    
    Robert Bosch GmbH has over 300,000 employees and they are privately held.
    
    I think my case has been made.
    - nottrue
      
      Friday, June 1, 2012 - 3:39 pm · Reply
      
      I just found the number of Employees at Apple, according to their 10K puts them at just over 60,000 employees… So, fine… drop Bechtel from my list of privately held companies with more employees than Apple.
- disposableidentity
  
  Friday, June 1, 2012 - 6:17 pm · Reply
  
  Not to mention that a public corporation can’t take itself public with it’s cash. (The cash, like all the company’s assets, belongs to the corporation, if that money is used to buy anything at all, that stuff too is owned by the corporation — at the end of the day the remaining shareholders still own the corporation).
  
  If Apple buys back shares, the owners of the remaining shares simply own a larger percentage of the company.
  
  Going private requires “external” money.
0u812

Friday, June 1, 2012 - 3:12 pm · Reply

Ummm… Correct me if I am wrong, but isn’t 200 – 110 = 90?
- Jersey_Trader
  
  Friday, June 1, 2012 - 4:02 pm · Reply
  
  $110 + Rapid Quarterly Growth = $200
  Stocks are about where they are going!
Techtock

Friday, June 1, 2012 - 3:13 pm · Reply

Apple should automate their complete production in the USA and buy their own communication network. That and make Dick Tracy wristwatches and jetpacks.
Laughing_Boy48

Friday, June 1, 2012 - 3:15 pm · Reply

All that spare cash doesn’t seem to be helping hold up it’s share price very much on a bad market day. Let’s see if it helps the following days’ recovery faster than any other stock. It’s amusing that whenever the bulls call out to buy Apple one day, the next day the stock drops even lower. I’m not sure if that’s merely a coincidence or what. Anyway, it’s too bad that cash can’t be used to boost Apple’s share price in some way. All that overseas cash just seems to be trapped and unusable.
- Randian
  
  Friday, June 1, 2012 - 3:38 pm · Reply
  
  I realize that the “in” investing philosophy these days is to time the market, stay short term, ride the trends, and be prepared to jump on or off a really, really fast moving train with little or no notice. However, if one holds that strategy with AAPL, he will–more likely than not–lose his ass. Too many hedge funds, pension plans, state treasuries, and the like can whip this equity into a fevered frenzy, driving it up or down 20 points in minutes. Unless you have a pico-computer to piggyback onto these wild swings, or can somehow predict the future, day-trading AAPL will probably ruin you. I know it’s not fashionable (especially with all the financial geniuses who read this site), but staying LONG with AAPL has worked fabulously well for me and my family, earning us over $3 million over the past two decades (on an original investment of $70,800).
  
  Just sayin’ . . . .
Rick Sterner

Friday, June 1, 2012 - 6:17 pm · Reply

Apple could pay off California’s $16 billion debt. Think of the goodwill that would create.
- Schmluss
  
  Friday, June 1, 2012 - 10:35 pm · Reply
  
  This is a stupid idea. It’s lik buying a truckload of cheap gin for an alcoholic.
- twilightmoon
  
  Saturday, June 2, 2012 - 1:24 am · Reply
  
  None. It would ruIn the company and create a disasterous precident going forward that government can be completely fiscally irresponsible with its budget and then dip into private funds to pay for bad decisions.
  
  That cash belongs to shareholders and to the company employees that helped create, run, and finance the company.
  
  The state of California needs to stop being reckless with its budget and mortgaging its future to pay for goodies now. The federal government needs to do the same.
  - oy
    
    Saturday, June 2, 2012 - 9:57 am · Reply
    
    Why don’t we put you in charge of Californias and the Federal governments budgets. You clearly have excellent ideas on how to fix the problems and are a clear and unadulterated fiscal genius. Where have you been hiding? It’s amazing how geniuses such as yourself go through life overlooked. Such a shame.
    - Oy, you Dumbshit
      
      Saturday, June 2, 2012 - 1:04 pm · Reply
      
      What makes you so certain that Twilightmoon has “gone through life overlooked” you sarcastic, immature condescending little bitch.
      
      I don’t know him/her personally but I can tell you, based on his comments, that he is more likely to be successful (and rich) than you Koolaid drinking liberal apologists. Do a study of how millionaires came to be, or how companies like AAPL became insanely successful, or how some countries and US states became fiscally sound and you will find they did it by living within (or below) their means.
      
      Now, I know it’s not fashionable to be rich or successful but it sure seems that Liberal “Leaders” will grab for those things by any corrupt means necessary when given the chance. Oy, don’t believe the lies that elected officials and media pundits are inherently smarter than you so just let them run this country into the ground. “Spending money to make money” doesn’t pass the smell test. If that “logic” would drive you or a business into bankruptcy then guess what, it’ll do the same for California or the US. Common sense advice like Twilightmoon’s is the only thing that will pull us out of this mess. It’s no more complicated than that.
chano

Friday, June 1, 2012 - 7:33 pm · Reply

I think they will get to $200B faster than 6 quarters.
thomas65807

Sunday, June 3, 2012 - 9:43 am · Reply

This will make Apple a takeover target. Leveraged buyouts occur when an outside investor borrows money, uses it to buy a company, then pays down the debt with the acquired company’s cash and sales of its assets (including patent sales and licenses).

Apple’s earnings growth (20-50%) is high enough that an acquirer could pretty easily make payments on its debt.

If AAPL accumulates $200/cash per share, I just may take the company over …