Apple stock climbs on word of planned US investments & repatriated cash [u]

Apple stock rose nearly $3 in Wednesday trading following the midday announcement of plans to invigorate the U.S. economy, including repatriating billions of dollars in foreign cash reserves. [Updated with news on employee stock bonuses]

NASDAQ share prices rose from an opening of $176.15 to close at $179.10. Trading was mostly flat during the day until around 2 p.m. Eastern time, when it spiked after Apple issued its press release.

The company says it expects to direct $350 billion into the U.S. economy during the next five years, hiring an additional 20,000 people along the way. Some of this will come in the form of investments in data centers, manufacturing, and a new campus.

The repatriated money will form a sizable sum however, with an expected tax bill of $38 billion.

Until recently, Apple refused to repatriate the tens of billions it keeps overseas, claiming U.S. corporate taxes were too high. The company lobbied politicians for a tax "holiday" without success.

Under the Trump administration and the Republican Party, though, a more corporate-friendly tax regime is en route, allowing the company to take less of a hit when it brings money back.

Update: Apple is granting workers an extra $2,500 in restricted stock units, according to Bloomberg sources. The perk should take effect in the coming months, available to most people below the director level.

21 Comments

SpamSandwich 32917 comments · 19 Years

About 6 years ago

I still find it miraculous AAPL continues to trade so low. The company is worth much more based on cash in the bank alone, but they don't play the game like Jeff Bezos knows how to play the game, so... expect the stock to continue to look embarrassingly undervalued.

lkrupp 10521 comments · 19 Years

SpamSandwich said:

I still find it miraculous AAPL continues to trade so low. The company is worth much more based on cash in the bank alone, but they don't play the game like Jeff Bezos knows how to play the game.

You are correct in that Apple refuses to play by the rules so Wall Street remains tepid in its valuation. Then we have the near constant barrage of pundits that say Apple has one foot in the grave since it doesn’t play by the rules and didn’t take their sage advice on what to do with their cash hoard. Maybe if Apple were deep in debt and had a massive P/E like Amazon they would get Wall Street’s blessing but I suspect not. Everybody is standing around waiting for Apple to stumble and die.

Kuyangkoh 838 comments · 7 Years

Hahahahaha, whats new....
Apple stocks rocks

sumergo 214 comments · 14 Years

lkrupp said:

SpamSandwich said:

I still find it miraculous AAPL continues to trade so low. The company is worth much more based on cash in the bank alone, but they don't play the game like Jeff Bezos knows how to play the game.

You are correct in that Apple refuses to play by the rules so Wall Street remains tepid in its valuation. Then we have the near constant barrage of pundits that say Apple has one foot in the grave since it doesn’t play by the rules and didn’t take their sage advice on what to do with their cash hoard. Maybe if Apple were deep in debt and had a massive P/E like Amazon they would get Wall Street’s blessing but I suspect not. Everybody is standing around waiting for Apple to stumble and die.

I suspect AAPL is also riding the general market buoyancy to some extent. It will be interesting to see how AAPL (and the market as a whole) reacts to the 2018 mid-term results and the 2020 presidential election. Only then will we know if the market is really booming (in step with the US economy over the last few years) or as a result of some other bizarre "trump effect" ;-)

sumergo said:

lkrupp said:

SpamSandwich said:

I still find it miraculous AAPL continues to trade so low. The company is worth much more based on cash in the bank alone, but they don't play the game like Jeff Bezos knows how to play the game.

You are correct in that Apple refuses to play by the rules so Wall Street remains tepid in its valuation. Then we have the near constant barrage of pundits that say Apple has one foot in the grave since it doesn’t play by the rules and didn’t take their sage advice on what to do with their cash hoard. Maybe if Apple were deep in debt and had a massive P/E like Amazon they would get Wall Street’s blessing but I suspect not. Everybody is standing around waiting for Apple to stumble and die.

I suspect AAPL is also riding the general market buoyancy to some extent. It will be interesting to see how AAPL (and the market as a whole) reacts to the 2018 mid-term results and the 2020 presidential election. Only then will we know if the market is really booming (in step with the US economy over the last few years) or as a result of some other bizarre "trump effect" ;-)

Trump is the best thing to happen to US businesses and stockholders since Reagan.