“Apple Inc. Chief Executive Tim Cook is doing exactly what Albert Einstein said defined insanity — doing the same thing over and over again and expecting different results, according to analyst Trip Chowdhry at Global Equities Research,” Tomi Kilgore reports for MarketWatch.
“Given how badly the stock has performed relative to the broader market since the company started raising debt to pay out dividends and make share repurchases,” Kilgore reports, “Chowdhry suggests it would seem crazy that Maestri and Cook continue to make the same mistake.”
“Chowdhry points out that Apple has spent $110 billion on share buybacks, $43 billion on dividends and debt has skyrocketed to $63 billion,” Kilgore reports.
“‘Apple share buybacks have been a complete disaster,’ Chowdhry wrote,” Kilgore reports. “The analyst compared Cook to John Sculley, Apple CEO from 1983 to 1993, who Chowdhry says was ‘instrumental in destroying Apple, and evaporating cash from the balance sheet.’ Apple started paying its first dividend under Sculley’s reign in May 1987.”
Read more in the full article here.
MacDailyNews Take: We knew this would be Trippy Chowderhead the second we saw the headline.
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