“Returning its overseas cash could net Apple Inc. $207 billion after taxes, according to an estimate from RBC analyst Amit Daryanani,” Jeran Wittenstein and Beth Mellor report for Bloomberg. “That’s more than the market values of Cisco Systems Inc. and Citigroup Inc.”

“While analysts expect most of the cash to be returned to shareholders in the form of share repurchases and dividends, Loup Ventures’ Gene Munster said that small acquisitions are possible too,” Wittenstein and Mellor report. “Some firms also highlighted the political nature of Apple’s announcement.”

Loup Ventures, Gene Munster: Apple’s cash will primarily be used for share repurchases rather than a large acquisition over $5 billion.

BTIG, Walter Piecyk: Apple’s primary goal was to “emphasize the $350 billion it was ‘contributing’ to the United States over the next five years while effectively announcing that it will fully take advantage of a tax cut that will save it nearly $50 billion of taxes.” “This all makes for good politics but we are more interested in whether Apple is actually increasing their overall investment rate.”

More analysts’ reactions in the full article here.

MacDailyNews Take: Yup.

Think buybacks and dividends, not major acquisitions.MacDailyNews, January 5, 2018

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