Apple Inc (AAPL): Didi Investment Expands Apple's Reach in China - Drexel Hamilton

This morning, the Wall Street Journal reported that Apple (NASDAQ: AAPL) has invested $1 billion in China-based Didi Chuxing, a taxi-hailing service that is sometimes described as the "Uber of China". Drexel Hamilton analyst, Brian White, thinks there are many reasons this is a positive for the company, not the least of which is stranded cash overseas. No change to Buy rating or $185 PT.

China is one of the most important markets in the world for Apple and this announcement represents an attractive investment, enhances the Apple ecosystem, opens up new opportunities for Apple Pay, offers the opportunities to learn more about the Chinese consumer, shows support for the country and provides Apple with a potential customer in the future for an "Apple Car".

Apple generated revenue of $58.7 billion in Greater China during FY:15 or 25% of sales. Apple also maintained 90% of its 2Q:FY16 cash overseas. There is a long list of reasons why the company would be interested in investing $1 billion in Didi Chuxing.

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $90.34 yesterday.

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