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

Posted:
in AAPL Investors edited January 17
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.
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Comments

  • Reply 1 of 21
    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.
    edited January 17 jony0watto_cobra
  • Reply 2 of 21
    lkrupplkrupp Posts: 6,295member
    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.
    applesnorangesmagman1979jony0anton zuykovwatto_cobraStrangeDays
  • Reply 3 of 21
    Hahahahaha, whats new....
    Apple stocks rocks
    magman1979watto_cobra
  • Reply 4 of 21
    lkrupp 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" ;-)
  • Reply 5 of 21
    sumergo said:
    lkrupp 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.
    macseekeranton zuykovequality72521
  • Reply 6 of 21
    sumergo said:
    lkrupp 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.
    Nice flip, content-free one-liner, but how about some more detail to support your view?  Like - why, how  . . .
    brertechfastasleepStrangeDays
  • Reply 7 of 21
    Superb moves by Apple and Tim Cook. Kudos.

    Also, credit is due entirely where it is due, which means the passage of the recent tax plan and the hectoring/shaming of US corporations into putting the issue of investing in US, and bringing jobs back to the US, on the front-burner.
    SpamSandwich
  • Reply 8 of 21
    I think everyone - democrats, republicans and independents can agree (or at least should) that this is the result of the passing of the recent tax bill - it is, plain and simple. Glad the repatriating of money to the U.S. got resolved and more Americans will have good paying jobs with benefits. And I am NOT trying to be political, just giving credit where credit is due. Now let's hope we can get to a 4% GDP growth - wouldn't that be something for everyone!
    macseekerdouglas baileyequality72521
  • Reply 9 of 21
    tundraboytundraboy Posts: 1,580member
    Ha ha, for one second there I thought that was 2,500 restricted stock units per employee not $2,500 in restricted stock units.
  • Reply 10 of 21
    >following the midday announcement of plans to invigorate the U.S. economy

    While I enjoy watching businesses do their part to encourage this tax bill scam because they deeply fear the racist, neo-Nazi regime in Washington, I have to admit a bit of exasperation due to sites like this that also push such a ridiculous narrative. Businesses expand due to **demand**; they do not simply open stores or hire more people because their effective tax rate is now close to zero if not zero. (Sorry techie boyz, no US company pays 32%.) Restricted stock units mean nothing for you or your family, because--and here it is--businesses ***hold*** onto their money to make more. None of these perks mean anything for any of you, unless you happen to be an employee of Apple, and even then, read the fine print.

    Apple, like other big businesses, have very good lawyers who find loopholes and direct the accountants to drive through them. They were not pining away on Irish shores to repatriate their money. They were hoarding it as they saw where they could. Tim Cook has always been thoroughly disingenuous when he appeared on television acting otherwise. And since this tax scam bill is so badly written, they'll find other loopholes to exploit, all while maintaining this phony, homespun routine about how much they care about you. They don't and if you expect otherwise from a business, that's foolish on your part.

    You people have had 30 years to understand the basics of trickle down BS and know that it does not work, and it never will. 
  • Reply 11 of 21
    Superb moves by Apple and Tim Cook. Kudos.

    Also, credit is due entirely where it is due, which means the passage of the recent tax plan and the hectoring/shaming of US corporations into putting the issue of investing in US, and bringing jobs back to the US, on the front-burner.

    The Republicans don't deserve credit. The same result could have happened without giving the mega rich huge tax breaks. 

    Democrats favored a lower tax rate to repatriate funds. What they didn't favor was giving the rich huge tax breaks that eventually everybody else is going to have to pay for. 

    Regular folks are going to save a few dollars on taxes, but pay a lot more for things like health insurance, and have to save more for the anticipated cut backs in programs like social security.

    Further, I doubt many companies are going to follow Apple's lead in terms of creating american jobs. They haven't on other things Apple has taken a lead on. 
    StrangeDays
  • Reply 12 of 21
    bellsbells Posts: 82member
    sumergo said:
    lkrupp 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.


    In the short term yes. In the long term no. Even Reagan understood the necessity of taxes. 
    fastasleep
  • Reply 13 of 21
    sumergo said:
    sumergo said:
    lkrupp 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.
    Nice flip, content-free one-liner, but how about some more detail to support your view?  Like - why, how  . . .
    How about reading on how business actually works? That might actually help you...
  • Reply 14 of 21

    bells said:
    sumergo said:
    lkrupp 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.


    In the short term yes. In the long term no. Even Reagan understood the necessity of taxes. 
    No sane person says taxes aren't needed. But with the way today's fed budget is built, no amount of taxation will be able to support it. Taxes (aka REVENUE, in simpletons speak, for the gov-t, even thought gov-t does not produce anything of value) are fine the way they are...it is the "spending" part of the budget that needs severe downsizing. Especially the part that is 61% of the budget...yes, I am talking about ss and medicare/aid
    edited January 17 SpamSandwich
  • Reply 15 of 21
    sumergo said:
    sumergo said:
    lkrupp 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.
    Nice flip, content-free one-liner, but how about some more detail to support your view?  Like - why, how  . . .
    For a noob you sure are going out of the way to make yourself an annoyance. Try looking around at what’s going on in the country.
  • Reply 16 of 21

    bells said:
    sumergo said:
    lkrupp 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.


    In the short term yes. In the long term no. Even Reagan understood the necessity of taxes. 
    No sane person says taxes aren't needed. But with the way today's fed budget is built, no amount of taxation will be able to support it. Taxes (aka REVENUE, in simpletons speak, for the gov-t, even thought gov-t does not produce anything of value) are fine the way they are...it is the "spending" part of the budget that needs severe downsizing. Especially the part that is 61% of the budget...yes, I am talking about ss and medicare/aid
    Quite right. These unimaginably massive entitlement programs are unsustainable. No amount of taxes will be able support the Boomer population through retirement, hospitalization when needed and eventual death. The so-called replacement population is drastically smaller.
    anton zuykov
  • Reply 17 of 21
    Superb moves by Apple and Tim Cook. Kudos.

    Also, credit is due entirely where it is due, which means the passage of the recent tax plan and the hectoring/shaming of US corporations into putting the issue of investing in US, and bringing jobs back to the US, on the front-burner.
    Sure, the repatriation part of Tax reform helps company like Apple. And Apple stock holders if they get some of it or result of it helps their Apple portfolio. Though the new tax reform doesn’t help people who are in California, NY, NJ, CT, etc. where they are hit hard with more tax now.
  • Reply 18 of 21
    Meanwhile, in an ACTUAL interview, Tim Cook said tonight: "There are two parts of tax bill, there's a corporate piece and an individual piece," Cook explained. "I do believe the corporate tax side will result in job creation and a faster growing economy."

    http://appleinsider.com/articles/18/01/17/apple-ceo-tim-cook-cites-gop-tax-reform-as-driver-in-350b-us-investment

    Enough said to all the haters (that means you Eliangonzal negative nancy as you don't know much about business let alone international business from what you posted).
  • Reply 19 of 21
    Superb moves by Apple and Tim Cook. Kudos.

    Also, credit is due entirely where it is due, which means the passage of the recent tax plan and the hectoring/shaming of US corporations into putting the issue of investing in US, and bringing jobs back to the US, on the front-burner.
    Sure, the repatriation part of Tax reform helps company like Apple.
    It also helps you, if you live in the US. How? They are going to pay 20% taxes on their money they kept overseas. Otherwise, if not for the tax bill, they would have kept it in the same place and you would get 0%. So, which one do you like more, the budget of your country (which is overspending a lot) to be larger by .2*X amount or to be larger by 0 dollars?
    So, all of a sudden, you get more money from the same company, when you decrease taxes. But how is that possible? We have been told that that is not possible to get that result by lowering tax rates, yet here we are?
  • Reply 20 of 21

    bells said:
    sumergo said:
    lkrupp 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.


    In the short term yes. In the long term no. Even Reagan understood the necessity of taxes. 
    No sane person says taxes aren't needed. But with the way today's fed budget is built, no amount of taxation will be able to support it. Taxes (aka REVENUE, in simpletons speak, for the gov-t, even thought gov-t does not produce anything of value) are fine the way they are...it is the "spending" part of the budget that needs severe downsizing. Especially the part that is 61% of the budget...yes, I am talking about ss and medicare/aid
    Govt doesnt produce anything of value? Infrastructure and constituent services are things of value. I value roads, sewage system, first responders, military, schools, etc.
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