“Carl Icahn continues to press Apple Inc. to use its $133 billion in cash to buy back its shares,” @4/7 Wall Street writes.
“Apple’s board could cast around to buy a company that would eat up most of its cash balance. Some of the best fits are too expensive. Google Inc.’s market cap is $390 billion. Facebook Inc.’s is $201 billion. Amazon.com Inc.’s is $149 billion,” 24/7 Wall Street writes. “Further down the table of American public corporations are several that have market values of about $100 billion. These include Goldman Sachs Group Inc. at $86 billion… Boeing Co. has a market cap of $91 billion. It is a hardware company of sorts, but the price points of its products are much larger than Apple’s. With most of the companies with market caps of $100 billion or so are excluded, the one that remains is McDonald’s Corp. with a market cap of $92 billion.”
“After combing through the list of public corporations that Apple could buy and dispose of its $133 billion via one M&A event, it looks like Icahn may be right,” 24/7 Wall Street writes. “The most appropriate thing for Apple to do is return its cash to shareholders.”
Read more in the full article here.
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