Apple now has more cash than Microsoft

“For the first time that I can remember, Microsoft closed the quarter with less cash than Apple. Cash, cash equivalents and short-term investments for Microsoft add up to $20.7 billion. Apple, meanwhile, closed the quarter with $24.5 billion,” Dean Takahashi reports for VentureBeat.

“Microsoft doesn’t even have enough cash to buy Yahoo! outright; it would likely have to finance an acquisition with some debt,” Takahashi reports.

“I never thought I would see this day,” Takahashi reports.

MacDailyNews Take: We did.

Full article here.

[Thanks to MacDailyNews Readers “Ken” and “Chuckles the Microsoft CEO” for the heads up.]

MacDailyNews Note: “The economic downturn may present extraordinary opportunities to companiess that have cash. Cash is king. We are very comfortable with cash in bank and it is not burning a hole in our pocket.” – Apple CEO Steve Jobs, October 21, 2008

45 Comments

  1. Olternaut writes, “When will it be possible for Apple to buy Microsoft?” Are you INSANE? Are you as likely to throw your own cash down the toilet?

    One buys a company intending to profit, to gain a return on one’s investment. Microsoft’s profit comes from Windows and Office. It has little technology or intellectual property of value. So either one continues the company “as is”, with all its negatives, or you shut it down out of spite and lose the profit stream. Make up your mind.

    Microsoft is a competitor, in both the business and value sense. I once suggested I might buy one share of Microsoft, then hope I lose money on it. I want to see it fade into irrelevancy. Buying Microsoft only rewards their shareholders and makes the buyer the loser.

  2. And Microsoft has made zero progress (gone backwards even?) with its marketing campaign, so it may have to spend another billion to get that right…

    It’s not the end of the beginning, but it sure as hell is the end of the beginning…

    ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  3. “To be fair, Microsoft pays a dividend and has repurchased shares. Apple has done neither. Nevertheless, the news is stunning.”

    Microsoft pays a dividend and spend over 120 billion to repurchase shares……. and their value per share is still in the toilet.

    Nuff said.. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

    PS. Does Microsoft have any actual assets??? Apple owns a bunch of stores… at least I think they do. Of do they just lease?

    Just a question.
    en

  4. “To be fair, Microsoft pays a dividend and has repurchased shares”

    Uh, they pay a very small dividend on a stock that simply is not growing…that’s how they get their daily volume. And, do the research on how many shares they actually repurchased. It was just an announcement to boost their stock to the sheep. The dividend is the only thing keeping the sheep around. The grass is alot greener at AAPL now.

  5. @ElderNorm and @CD:

    One can profit from owning a stock by appreciation and/or from dividends. The fact that MSFT pays a dividend and APPL doesn’t partially offsets the tremendous difference in appreciation between the two stocks. Furthermore the dividend payments have certainly reduced the amount of cash Microsoft has on hand.

    That being said, APPL still blows MSFT away as an investment over the past several years and I see no reason why this will change in the future.

    APPL is a tremendous growth stock and MSFT has essentially become a utility.

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