“In the past year alone, it’s become increasingly apparent that Apple needs to further diversify and pursue a growth at all cost strategy to avoid stagnancy and dependence on its cash position to demonstrate stability,” Alex Cho writes for Seeking Alpha. “We’re hoping the company takes a different direction with its M&A strategy upon tax repatriation.”
“Though it’s somewhat of an oddity that Amit Daryanani suggested a merger between Apple and Walt Disney (NYSE:DIS), I think the rationale makes a lot of sense,” Cho writes. “There are various paths Apple may pursue outside of media to reach $50 billion+ in total service segment revenue. It’s worth noting that the cash pile sitting overseas is generating pathetically low yields and should be utilized from an ROE framework where excess cash should either be deployed or returned to shareholders.”
“This is where the analysis gets extremely subjective, because we’ve never seen a mega-merger between companies of this scale,” Cho writes. “We’re talking about Walt Disney and Apple at $179 and $741 billion market capitalization, respectively. ”
Much more in the full article here.
MacDailyNews Take: First, let’s get the U.S. corporate tax situation under control. We’d love to see a permanent fix for repatriation, instead of another one-off tax holiday that fails to address the root problem.
“a growth at all cost strategy”
What’s that?
as EGG approaches PLM (+-BUN), AAPL veers towards a classic SAMN curve without adjusting for BACN YTD.
A bunch of stupid hypothetical bullshit from another moron analyst.
Couldn’t have put it better
“Another moron analyst”
That’s redundant.
Really? Increasingly apparent to whom? Diversification in what areas? In what ways is Apple “stagnant?” And who actually believes that Apple feels the need to “demonstrate stability?”
I should have just let michaele11111’s post stand on its own. Succinct and accurate…
gotta get that 15% corporate tax permanently, Mr. President.
In your dreams. No tax reform without Trump releasing his incriminating tax returns 😊
Trump doesn’t want you to see he is under water and is in the pocket of the Oligarchs. Note he just closed off public view of who goes in to visit- can’t have those Lobbyists showing up on the visitor logs of the Oval Office or the Golf Club. The money is increasingly on Mike Dense (spelling intentional)- former Talk Show Host- to take over before the end of the term.
Trumpenstien is continuing the Clown Car dysfunction that is an embarrassment to just about any sentient being. Backward Aircraft Carriers are just the tip of the Iceberg. Maybe he can write a book with disgraced former Alabama Governor Robert Bentley a.k.a. The Luv Guv about their “experiences”.
Trumpler
well, tune-in to the next exciting episode of Rachel Maddow, as exciting as Geraldo’s Al Capone Vault.
too bad about your libtärd last night in Georgia…
bwahahahahahaha.
The Democrat Party is D E A D.
how dead is it, you might ask?
…it’s deader than Ol’ Yeller himself…doorknob dead…Franco dead…it’s future is as bright as The El Chapo 401k Plan.
good times.
Funny, I’ve used that Geraldo/Al Capone’s Vault for Maddow’s show too. Can’t stand her smug snark style, even if you can agree with her – the messenger is just so repulsive. (Much more obnoxious than conservative TV hosts.) She’s the show for desperate liberals anxious for their daily choir hookup.
The far left counterpart to Fox News? Yeah, you are the desperate conservatives looking for your daily choir hookup of ego stroking speculation and twisted information.
well, botty, 48.1% of the vote certainly scared the crap out of Trump and friends. We will see how the runoff turns out. You may be celebrating too quickly.
If the Democratic Party dies off, other groups will rise to fill its place. I wish that we have five or six parties. I certainly can’t imagine the horror of a single Republican Party controlling the U.S.
D E A D.
What makes 15% the correct number?
Does that even cover the costs of Trump’s military exercises, present and future when they ultimately become quagmires like every other US military adventure the last 50 years?
Shouldn’t corporations be taxed on what they use, how much they pollute, and the damages (intentional or otherwise) they often inflict on society?
If one was fiscally prudent, he wouldn’t pull a convenient round number out of the air and declare a simplistic flat tax. He would tally his essential expenditures and their timelines, then mody his income and savings to meet those expenditures plus a margin to spare. Your president hasn’t done any of this. He dismisses government data and statistics. Trump is already well on his way to setting executive spending records, just look at his travel and military budget excesses already.
I suppose it could be worse. Imagine how bad it would be if he wasn’t golfing 3 days per week.
The reality is that the market is salivating at getting Apple to spend its cash.
Got nothing to do with whether it is good for Apple or its stockholders.
You just gave the right answer.
Wall Street fucks over everyone but themselves and with now even less regulatory oversight the foxes have the keys to the henhouse.
They get lots of fees for M&A, stock buybacks and other wastes of money and that is why they all have wet dreams of repatriation.
Fees if you buy, fees if you sell, fees if you hold or die and go to hell. Call it the Wall Street Tax.
Exactly.
What would happen to Apple’s focus if they had to produce hit Star Wars movies to hit their quarterly numbers? Any focus would be gone.
Diversification should mean increasing Mac sales (which have do increase whenever they update them regularly), future AR/VR products, create a full-featured TV OS with gesture control and full-featured apps, and maybe maybe a car (the latter could also be a huge loss of focus).
Buying a studio would be the end of an Apple with any resemblance to Steve’s focused Apple.
Actually the problem is not which you have posted here rather than changes in internal circumstances. All of that Apple have more chances to service.