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$6 billion profit on almost $27 billion revenue... that's almost 50% YTD. That's insane. And 62% of that from outside the US. Say whatever you want about Apple

by kprobst 16y ago

$6 billion profit on almost $27 billion revenue... that's almost 50% YTD. That's insane. And 62% of that from outside the US. Say whatever you want about Apple, but they know how to print money.

blantonl 16y ago
they also know how to sit on that money as well... which has quite a few investors pretty antsy.
- muhfuhkuh 16y ago
  I think that, for now, their $130 share gain in the last 52 weeks is more than making up for it. They can talk dividends when their shares are near Microsoft's level and their product pipeline is less stacked and hype machine is dying.
  - patrickk 16y ago
    I'm re-reading Peter Lynch's classic "One up on Wall Street" at the moment. He's a big advocate of share buybacks over dividends (unless Apple can some up with something else to do with the cash.) Warren Buffett is also. Buybacks reduce the number of shares outstanding in the market and thereby increase earnings per share, which boosts the share price, rewarding existing investors. So we may see Apple engage in buybacks.
    - blantonl 16y ago
      We probably won't see buybacks and dividends any time soon. Apple remembers the days when they almost went bankrupt and that has set the tone for how they manage financially. They are very conservative with their cash. They have made it very clear that they are reserving that cash for a big acquisition. IMHO that means that they are waiting for the moment when someone innovates in a way that threatens them and they can bring the talent and assets aboard. Like the Google process, except you pay with cash.
    - tdmackey 16y ago
      That's the idea of buybacks but there's no guarantee it will result in an increased share price. Take Cisco for example, by the end of this year they will have made around $82 Billion in buybacks while their stock has remained flat over the past 10 years.
    - tsotha 16y ago
      Buybacks are much preferable, IMO. They only create a tax liability for the shareholder when the shares are sold, as opposed to dividends which are taxed the year they're disbursed.
schammy 16y ago
I know! And the amazing thing is just to think about how relevant this is to Hacker News! Because when I think, gee, I wonder what technology Mega Corp is raking in the billions, this it the very first site that comes to mind!

by kprobst 16y ago

$6 billion profit on almost $27 billion revenue... that's almost 50% YTD. That's insane. And 62% of that from outside the US. Say whatever you want about Apple, but they know how to print money.

blantonl 16y ago

they also know how to sit on that money as well... which has quite a few investors pretty antsy.

muhfuhkuh 16y ago
I think that, for now, their $130 share gain in the last 52 weeks is more than making up for it. They can talk dividends when their shares are near Microsoft's level and their product pipeline is less stacked and hype machine is dying.
- patrickk 16y ago
  I'm re-reading Peter Lynch's classic "One up on Wall Street" at the moment. He's a big advocate of share buybacks over dividends (unless Apple can some up with something else to do with the cash.) Warren Buffett is also. Buybacks reduce the number of shares outstanding in the market and thereby increase earnings per share, which boosts the share price, rewarding existing investors. So we may see Apple engage in buybacks.
  - blantonl 16y ago
    We probably won't see buybacks and dividends any time soon. Apple remembers the days when they almost went bankrupt and that has set the tone for how they manage financially. They are very conservative with their cash. They have made it very clear that they are reserving that cash for a big acquisition. IMHO that means that they are waiting for the moment when someone innovates in a way that threatens them and they can bring the talent and assets aboard. Like the Google process, except you pay with cash.
  - tdmackey 16y ago
    That's the idea of buybacks but there's no guarantee it will result in an increased share price. Take Cisco for example, by the end of this year they will have made around $82 Billion in buybacks while their stock has remained flat over the past 10 years.
  - tsotha 16y ago
    Buybacks are much preferable, IMO. They only create a tax liability for the shareholder when the shares are sold, as opposed to dividends which are taxed the year they're disbursed.

schammy 16y ago

I know! And the amazing thing is just to think about how relevant this is to Hacker News! Because when I think, gee, I wonder what technology Mega Corp is raking in the billions, this it the very first site that comes to mind!