By Christian Zibreg on May 6, 2015
During a conference call discussing its fiscal 2015 second-quarter results, Tim Cook & Co. also announced expanding their already massive capital return program to a whooping $200 billion through March of 2017 to “reflect strong confidence in what lies ahead for Apple.”
A filing with the United States Securities and Exchange Commission posted today on Apple’s Investor website casts more light on the initiative, confirming the company will fund this expansion through a new seven-part bond to raise the funds. Read More
By Christian Zibreg on Mar 6, 2015
Apple of California will replace AT&T in the Dow Jones Industrial Average after the close of trading on March 18, Reuters reported this morning. The famed Dow Jones Industrial Average is indicative of the overall market health so Apple joining and replacing the nation’s second-largest carrier on the index is certainly an encouraging sign for the economy.
Because the Dow is a weighted average of absolute stock price (unlike other indices), Apple was unable to join the Dow until its seven-to-one stock split, which took place in June of last year. Read More
By Christian Zibreg on Nov 25, 2014
Apple’s market capitalization has hit a new milestone, going up 0.8 percent shortly after the market opened Tuesday morning and reaching a market value of nearly $702 billion, higher than any U.S. company in history. By comparison, its previous record market capitalization hit $658 billion in September 2012.
The stock has been rising steadily over the past few months and has picked up speed after the company posted record opening weekend sales for the new iPhones in September and investors reacted positively to the Apple Watch and other new products Tim Cook & Co. unloaded as part of the massive Fall product refresh. Read More
By Christian Zibreg on Jun 9, 2014
As promised during Apple’s most recent earnings call, the Cupertino, California headquartered consumer electronics powerhouse is set to open on Monday at $92.22 a share as the company puts forth its plan to split stock, its fourth stock split to date.
All common stock owners will receive six additional shares for each share in existence. As a result, the value of each individual share will drop accordingly, but the value of their total holdings will not. Read on for the full reveal… Read More
By Christian Zibreg on Feb 10, 2014
Controversial activist investor Carl Icahn continues to aggressively purchase shares of Apple while insisting that the company increase the size of its share buyback program. His proposal for a $50 billion buyback has been met with resistance by proxy advisory firm Institutional Shareholder Services (ISS) which now recommends voting against the plan.
ISS argues that the Apple board has already returned the bulk of its U.S.-generated cash to shareholders through the company’s aggressive stock buybacks and dividends payouts. As a result of large institutional investors siding with Apple, Icahn has withdrawn his proposal… Read More
By Christian Zibreg on Feb 7, 2014
Following notable excerpts from Daisuke Wakabayashi’s interview with Tim Cook in The Wall Street Journal, the financial newspaper has now posted the whole thing on its Digits blog.
The full interview gives us a more detailed insight into the mindset of Tim Cook’s Apple as the CEO discusses recent topics of interest, including Lenovo’s $2.9 billion purchase of Google’s Motorola Mobility unit and additional information regarding Apple’s share buyback program.
He also took time to touch upon the ongoing discussion concerning supposedly bigger iPhones in the pipeline, the current products not yet hitting the ceiling and lots more. I’ve included the best quotes and tidbits for your reading pleasure after the break… Read More
By Ed Sutherland on Aug 19, 2013
Although Apple is set to buy back $60 billion of company stock through 2015, experts are advising CEO Tim Cook and others to boost that figure. An additional $50 billion stock repurchase could add $4.25 to share value at little cost to the cash-rich technology giant, according to one Wall Street analyst and activist investor Carl Icahn.
Icahn, who recently bought $1.5 billion of Apple stock, helped Apple tock surpass $500 per share… Read More
By Christian Zibreg on Aug 13, 2013
Controversial billionaire activist investor Carl Icahn has announced on Twitter making a large investment in Apple. Touting a “large position” on the stock, he said he believed the stock to be “extremely undervalued” and revealed having a “a nice conversation” with Apple CEO Tim Cook earlier today, which Apple has officially confirmed now.
Needles to say, Apple doomsayers came out of the woodwork screaming “There goes Apple!” Another conversation would follow soon, Icahn tweeted out. He did however let slip he may press Apple to use its cash pile to repurchase more of its shares from the public, perhaps in an effort to reduce the company’s exposure to fickle Wall Street investors and crazypants analyst… Read More
By Ed Sutherland on Jul 10, 2013
If Wall Street was caught flat-footed by Apple’s lower earnings back in April, analysts are preparing for more bad news for the third quarter. Apple is expected to announce lower quarterly revenue and sales, prompting one expert to slice thirteen percent off his previous forecast for the third quarter. Although a $5.4 billion reduction in expectations might seem dramatic, it is actually rosier than a review of what Apple may announce July 24… Read More
By Christian Zibreg on Jun 26, 2013
For years, the media has been keen to compare companies based on their market capitalization. The metric itself is pretty fluke, but it makes for nice headlines – especially if the topic of reporting is Apple. Earlier this year, for example, much noise was made about Apple passing the oil giant ExxonMobil to become the world’s most valuable corporation by market capitalization.
Having said that, it really shouldn’t be surprising big media is now reporting that the Internet giant Google recently “passed” Apple to become the world’s most valuable technology corporation. The bold claim comes with a caveat: you have to stretch your definition of market cap and strip out some key metrics… Read More
By Ed Sutherland on Jun 7, 2013
Following clickbait dead-in-the-water headlines which spelled doom for Apple on overzealous analysts projecting overly optimistic iPhone sales, it’s now Samsung’s turn to feel Wall Street’s wrath. So, is Samsung’s smartphone business running out of steam?
That’s the question Wall Street is pondering as investors punish the South Korean firm after orders for its flagship Galaxy S4 had supposedly dropped by as much as thirty percent.
Friday, Samsung shares slid by more than six percent after more than $12 billion was sliced from the Android maker’s market capitalization. Can Samsung stop the downward spiral, perhaps offering a stock buyback as Apple did? Or are we seeing only the latest signs of an industry-wide slowdown in demand?
Either way, the old saying about people living in glass houses seems all the more pertinent… Read More
By Ed Sutherland on May 1, 2013
Wall Street is nothing if not fickle. Questions over Apple’s future profits sent the company’s stock into a tailspin for the past six months, then a recovery of sorts is now underway.
The iPhone maker Tuesday floated a record $17 billion in debt, an action that literally had investors falling over themselves.
Consider that Apple up until now was literally the only major technology corporation with zero debt on its books. By the end of yesterday, $50 billion in orders were received for what now looks to be Apple’s latest hot product: the iDebt… Read More
By Ed Sutherland on Mar 25, 2013
Like the first hints of green during a long-awaited spring, some sanity regarding Apple’s fiscal future is poking its head above ground. Wild speculation that the iPhone maker was washed up has been replaced with realism. The latest example: calm predictions that Apple’s second quarter income will be down – but with record projected revenue.
Fortune reports a Wall Street consensus of $10.18 per share, down from $12.30 for the second quarter of 2012. At the same time, Apple is projecting record quarterly revenues of $41 billion to $43 billion. If there is a “problem,” it may be lower margins from all the new products Apple introduced… Read More
By Ed Sutherland on Mar 19, 2013
With Apple’s cash pile projected to balloon from a whopping $137 billion at the end of the previous quarter to an astounding $170 billion by year’s end, there is a growing call for the iPhone maker to increase its stock dividend as a way to build a safety net under its beleaguered shares. The report of a bulging corporate vault comes as one Wall Street analyst proposes a four-step solution to pull Apple out of the weeds.
According to Topeka Capital Markets analyst Brian White, Tim Cook & Co. should start with raising the quarterly dividend to at least $3.75 per share. A five-year program should begin with Apple increasing the $2.65 per share quarterly dividend paid to investors while also repurchasing up to $100 billion in company stock… Read More
By Christian Zibreg on Mar 6, 2013
With Apple’s market capitalization having fallen below the $400 billion mark, the first such drop since January 2012, many armchair analysts are observing on Twitter and elsewhere a worrying correlation between stock prices of Apple and its chief rivals Google and Samsung. Looking at the period from Apple’s September 2012 peak, each time Apple went down, Google and Samsung seemingly rose.
And with this weird correspondence between Apple’s lows and Google’s and Samsung’s highs, some analysts are calling the Internet giant “the next Apple”, estimating that Google is on its way to join the $1,000 a share club. What a difference a few months make: one analyst in April 2012 said Apple would become the world’s first $1 trillion company. While Apple’s pain = Google’s gain, luck in the stock market changes quickly… Read More
By Ed Sutherland on Mar 4, 2013
You can’t get a better financial advisor than Warren Buffett. The so-called ‘Oracle of Omaha’ Monday weighed in on what Apple should do, faced with low stock prices and one investor’s call to use the iPhone maker’s billions in cash. Although Buffett’s appearance Monday morning on CNBC lasted three hours, the short version is this:
Apple CEO Tim Cook should buy his company’s stock while cheap. It’s uncertain whether the financial whiz will have any luck, seeing Cook’s predecessor Steve Jobs supposedly ignored similar advice. Coincidentally or not, Apple’s market capitalization dropped below $400 billion in early trading Monday, the first such drop since January 2012… Read More
By Ed Sutherland on Jan 25, 2013
So… Exxon passed Apple to reclaim the title of the World’s Most Valuable Corporation. But how much did Wall Street’s prognosticators have to do with Apple’s drop in value following its earnings report earlier this week?
While investors realize the company is facing stiff competition and potentially lower profits, a number of financial observers were way off in the predictions ahead of Wednesday results. Indeed, while Apple reported $54 billion in fourth-quarter revenue, analysts had forecast between $51.7 billion and $65.69 billion.
According to Fortune, some analysts were up to 17 percent wrong, while some well-known Wall Street Apple watchers came within 3 percent of the iPhone maker’s final numbers. Partially as a result of such wildly-varying forecasts, Apple is changing the way to releases its revenue guidance… Read More
By Christian Zibreg on Jan 25, 2013
Despite Apple’s record holiday quarter earnings, investors continue to punish the Apple stock which has took quite a beating since Tuesday’s earnings report. As the stock continues to slide, Apple on Friday hit a new 52-week low, becoming worth less than Exxon Mobil and ceding the top spot to the oil corporation.
As of this writing, Exxon Mobil was worth about $1 billion more than Apple. Though Apple was briefly ahead, Exxon has reclaimed the lead. The situation is changing by the second so we’ll have to wait until the end of trading today to see who emerges victorious… Read More
By Ed Sutherland on Jan 18, 2013
I also have another headline: Al Gore profits from Apple losses. Regardless of where you stand, the debate over whether Apple’s iPhone is facing declining demand has now spread from simply a question of iOS versus Android. It’s about Benjamins, who wins and who loses. Facing the ‘threat’ of Apple share value rebounding when its quarterly sales numbers are released next Wednesday, investors are hoping the company’s stock remains low. Among them: former U.S. Vice President and Apple board member Al Gore.
Gore last week exercised options to buy 59,000 shares of Apple stock for only $7.475 per share. Because of the low option price versus the actual stock price of $495.2, he was able to buy Apple stock worth more than $29 million for just $441,000… Read More
By Cody Lee on Jan 8, 2013
As hard as we try, we just can’t escape the ongoing ‘iPhone nano’ rumors. It seems that everyone in the tech industry is waiting on Apple to diversify its handset lineup and introduce a less expensive iPhone for prepaid and emerging markets.
In fact, we’ve already heard a report on the topic today from DigiTimes, who says that their sources have actually seen the low-cost smartphone. And this afternoon, The Wall Street Journal throws its hat into the ring with its own scoop… Read More