Apple's (AAPL) Swelling Cash Hoard Could Double to $100 Billion in 2012
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Price: $169.01 -0.01%
Overall Analyst Rating:
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Dividend Yield: 0.5%
EPS Growth %: -0.7%
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 0.5%
EPS Growth %: -0.7%
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Rivals have long been jealous of Apple's (Nasdaq: AAPL) cutting edge products, but now they have something else to be jealous about - its cash hoard.
Apple ended September 25, 2010 with $51 billion in cash, short and long-term marketable securities. This is up from $34 billion at the end of the same quarter last year.
Microsoft (Nasdaq: MSFT), long thought to have the largest cash hoard, has around $44.6 billion, made up of cash, cash equivalents, and short-term investments and equity and other investments.
Google (Nasdaq: GOOG) has a little over $30 billion of cash, cash equivalents and marketable securities.
Apple is growing its cash hoard faster than the two rivals and some analysts see this cash hoard reaching nearly $75 billion in FY11 and nearly $100 billion by FY12. That's right $100 billion!
At the latest conference call CEO Steve Jobs was asked what he will do with the cash. He said they would use it for strategic opportunities instead of a paying a dividend.
"We strongly believe one or more strategic opportunities will come along we're in a unique position to take advantage of," Jobs said. "We don't let the cash burn a hole in the pocket or make stupid acquisitions. We'd like to continue to keep our powder dry because we think there are one or more strategic opportunities in the future."
Some have speculated that Apple could buy Facebook or another social media company. The company could also buy a semiconductor or battery company or buy a network company.
Even if Apple makes an acquisition or two, it would likely only 'dent' its large, and swelling cash hoard. It's no wonder why Apple is the most valuable tech company in the world.
Apple ended September 25, 2010 with $51 billion in cash, short and long-term marketable securities. This is up from $34 billion at the end of the same quarter last year.
Microsoft (Nasdaq: MSFT), long thought to have the largest cash hoard, has around $44.6 billion, made up of cash, cash equivalents, and short-term investments and equity and other investments.
Google (Nasdaq: GOOG) has a little over $30 billion of cash, cash equivalents and marketable securities.
Apple is growing its cash hoard faster than the two rivals and some analysts see this cash hoard reaching nearly $75 billion in FY11 and nearly $100 billion by FY12. That's right $100 billion!
At the latest conference call CEO Steve Jobs was asked what he will do with the cash. He said they would use it for strategic opportunities instead of a paying a dividend.
"We strongly believe one or more strategic opportunities will come along we're in a unique position to take advantage of," Jobs said. "We don't let the cash burn a hole in the pocket or make stupid acquisitions. We'd like to continue to keep our powder dry because we think there are one or more strategic opportunities in the future."
Some have speculated that Apple could buy Facebook or another social media company. The company could also buy a semiconductor or battery company or buy a network company.
Even if Apple makes an acquisition or two, it would likely only 'dent' its large, and swelling cash hoard. It's no wonder why Apple is the most valuable tech company in the world.
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