Apple now worth $103 per share – in cash

“As of its latest earnings release on January 24, Apple now has a total of $103 in cash… That’s per share,” Richard Bloch writes for Seeking Alpha. “The total amount – including cash, short-term investments, and long-term marketable securities – now adds up to just under $100 billion.”

“That’s a lot of cash, but right now it’s all locked up in the shares,” Bloch writes. “It’s there, of course, but shareholders are starting to get a bit frustrated as to how the money will be used and whether it might be best to return some to shareholders.”

Apple “is worth twice as much today as it was two years ago and four times what it was worth three years ago,” Bloch writes. “And that’s probably the best news of all for Apple shareholders.”

Read more in the full article here.

MacDailyNews Take: It seems fairly obvious that Steve Jobs had and Apple continues to have a plan for that cash and, as with all things, they just won’t reveal it until they’re ready.

When Apple buys Microsoft and shuts it down, everybody will finally understand. 😉

36 Comments

    1. Yes it would be nice. I’d also like to see a nationwide 802.11ac network exclusive to Apple devices. Anything to give Apple an exclusive edge that the competitors can’t clone very easily.

    2. Why should they bother to install fiber networks when Internet companies are already starting installing FTTH and they can have all benefits without any cost, maintenance and the power to switch to another provider if things go wrong and even blame them…

      Even thought, I can still see an interest to own the end-to-end from the devices to their cloud services now…

  1. “now adds up to just under $100 billion.”

    Added up to that as of December 31.
    AAPL’s cash hoard has now increased beyond that, that’s a foregone conclusion.

  2. Any shareholder can give themselves a “dividend” of any desired size, at a time of their own choosing. Just sell some shares… If those sold shares have been owned for more than one year, any profit (capital gain) is taxed at a lower rate. A distribution as an actual “dividend” is generally taxed higher as regular income, 100% of it.

    I’d rather let Apple handle the “cash” and, when I need the money, I’ll sell some shares to get precisely what I need precisely when I need it (and pay lower income tax). Tomorrow might be a good day to “realize” some some paper profits… 🙂

    1. Isn’t that assuming that paying a dividend would cause the share price to go down? In Apples case wouldn’t a regular dividend create more interest in the stock and drive the price up?

      1. AAPL’s price IS higher because of all that cash. It’s not a dollar-for-dollar consideration, but it is certainly a consideration. Microsoft has been paying a “regular dividend” for years, and it’s share price has been flat for the past decade.

        I’d rather have that cash as part of the stock price, not subject to taxes until I (not Apple) decide to sell some shares, and then only the profit is taxed as a long term capital gain. 100% of a dividend is taxed as regular income.

    2. I agree! While I would not turn down a dividend, the only people pining for them are the short-term minded asset managers and helplessly greedy hedge fund managers. I am perfectly happy to keep that cash working for me safe and secure in my Bank of Apple shares 🙂

  3. Think about this… On March 20, 2009, AAPL’s price was $102 per share. Less than three years later, Apple’s “cash” is more than the value of the entire company on March 20, 2009.

  4. With their cash they could buy every kid in school an iPad and still have over half their cash remaining – think what that would do to the US education system? That would be cool

    1. Obviously you didn’t listen to Steve Jobs about the state of the US school system. Technology is not the answer, the problem is the apathetic government/union approach and the lack of excellence. Mediocrity and Microsoft rule the skule.

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