Apple Market Share: By now, most investors are well aware that the Apple Inc. (NASDAQ:AAPL) cash pile continues to grow. For this reason, the question of what the Cupertino-based company is going to do with the money continues to be a point of discussion.
Apple Inc. (NASDAQ:AAPL) is actually the smart money’s second favorite publicly traded company but hedge funds have started dumping Apple Inc. (NASDAQ:AAPL) in favor of a surprising financial stock (see which stock hedge funds are buying like crazy).
Bloomberg has shared some information on what the company is thinking, and how they may move forward in the near future.
The article states that Apple “will outline what it plans to do with a growing pile of cash by next month, according to Howard Ward, chief investment officer at Gamco Investors Inc.”
In addition to the more than $137 billion that Apple Inc. (NASDAQ:AAPL) currently has in cash, the company is expected to add roughly $42 billion in earnings this year. As you can see, this number continues to grow.
During a recent interview with Bloomberg Radio’s “Surveillance” show, Ward said the following:
“We’re going to get an announcement from the company as to how they intend to reallocate some of their cash. They will put a floor under their stock at a higher price than it is today.”
In the same article, Keith Goddard, president of Capital Advisors Inc., a company that owns 23,100 Apple shares, said the company will likely “announce a dividend or buyback by the end of the year, possibly as early as April, when the company is scheduled to release second quarter earnings.”
“It really is mind-boggling to me that they’re being so stubborn about sitting on so much cash.”
Until Apple Inc. (NASDAQ:AAPL) decides what to do with its cash hoard, this conversation is going to continue. If you believe what Ward and Goddard have to say, a decision may be coming sooner rather than later. Until then, let the conversation and speculation continue.
What do you believe Apple should do with its cash? Share your thoughts in the comment section below.
Check back here for more updates on Apple Market Share.
DISCLOSURE: I have no positions in any stock mentioned.
For more news stories, visit these pages: