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Apple's cash reserves are not infinite. And any desperate attempt to "hold up" the price will be punished by the market. This is very different from usual $15B
by bitpush 2y ago
Apple's cash reserves are not infinite. And any desperate attempt to "hold up" the price will be punished by the market. This is very different from usual $15B stock buyback, which you can explain but try doing it with $200B and you are seriously weakening the company.
- freetanga 2y agoThe executives role is to increase share price and Company evaluation for shareholders. If all you can do is sit on a pile of cash without any good ideas on how to turn that cash into larger profits, or you just burn it to buy stock back or give dividends, it is a way of saying “I have no vision for the future of this company, I don’t know what else we can do, we will not continue to grow aggressively, so might as well take the cash dear shareholder” Not a great move in front of the board. Done marginally is fine, sends a “we made more that we can use” cocky statement. Doing it massively to keep stock afloat, means you are out.