“Apple has $246 billion in cash sitting around, and investors have lots of ideas about how the company should spend it,” Emily Bary writes for Barron’s. “Most of them, for now, seem unlikely.”
“A Baird survey of U.S. consumers found that 22% would most like Apple to develop a car within the next five years,” Bary writes. “This was the top response, followed by a preference for an Apple streaming service that’s like Netflix.”
“Netflix, Tesla, and Disney [acquisitions] are discussed from time to time, but Baird analyst William Power says these are unlikely,” Bary writes. “Unfortunately for Apple dreamers, the company will probably opt to invest money in less flashy areas, like its ‘Services’ business. Another investor-friendly use for the cash that Apple may choose: buying back more stock. Power notes that 94% of Apple’s cash is overseas, so a policy that makes it cheaper for companies to bring that money stateside ‘could result in a large increase in share buybacks.'”
Read more in the full article here.
MacDailyNews Take: Yes, look for increased buybacks (and maybe a bit better dividends), post-tax reform/repatriation.
SEE ALSO:
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Cramer: Apple’s Tim Cook is ‘patriotic’ on taxes – December 21, 2015
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U.S. companies now have $2.1 trillion overseas to avoid corporate taxes – March 4, 2015
