“Carl Icahn must feel a tad sheepish these days. The super investor announced on April 28, 2016 that he was dumping his entire stake in Apple because of concerns that the company’s sales were in a long-term slump,” John Persinos writes for TheStreet. “Since then, Apple shares have jumped more than 30%.. The tech giant on Tuesday reported robust fiscal first-quarter operating results that beat analysts’ expectations and rocketed shares higher. Apple stock Wednesday jumped 6.1%, its largest one-day gain in six months.”
You might be tempted to sell, but “Apple still is home to scores of innovative engineers and marketers. The company’s pipeline is jammed full of new products awaiting launch, including the iPhone 8. Another unexpected tailwind: the policies of Donald Trump,” Persinos writes. “Trump plans to offset the pain of trade restrictions by granting corporations significant tax cuts and by allowing cash hoards repatriated from overseas to get taxed domestically at a reduced rate. That would be a boon for Silicon Valley technology giants that are hoarding a lot of cash overseas, prompting them to launch a wave of acquisitions. This activity would in turn stimuldate innovation and profits.
“Apple is sitting on $246 billion in cash, almost all of it parked overseas to avoid higher tax rates in the U.S.,” Persinos writes. “Trump’s tax repatriation plan would invigorate Apple like a shot of steroids.”
Read more in the full article here.
MacDailyNews Take: Apple on steroids? Apple’s would-be rivals just collectively pooped their pants.
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Carl Icahn out of Apple over worries about China’s ‘dictatorship’ government – April 29, 2016
Carl Icahn dumps all of his Apple shares; stock drops – April 28, 2016