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.
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.
Comments
Apple stocks rocks
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.
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.
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.
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
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).
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?