If Trump enacted his promised corporate tax reforms, Apple would likely repatriate the bulk of its $230B cash reserves held overseas, and see its profits jump by 16%. The prediction was made by Citi in analysis seen by Business Insider.
Trump’s tax reform plans include reducing the corporate tax rate from 35% to 15% in the US, and applying a tax of only 10% to the profits of US companies that want to repatriate cash being held overseas […] The proposals would make it likely that Apple would move its foreign cash back to the US in order to pay the least amount of tax. In the most recent quarter, Apple said it was holding $246 billion in cash, of which $230 billion was held in foreign subsidiaries.
The combination of the two would have a significant impact on earnings per share, says Citi …
A UBS analyst says that AAPL stock could reach as high as $200/share over the next 2-3 years, as the stock hit its 11th record high so far this year. It has already hit the equivalent of $1,000/share when you factor in the share split.
MarketWatch notes that the stock yesterday set two records: its highest ever value, at $143.80, and its highest intraday price of $142.80. Many analysts are setting high target prices for the stock, and one of them even predicts a possible $200 level, notes Business Insider – though he does add some crucial riders …
Yesterday, a Morgan Stanley analyst expressed just how big of an impact the upcoming iPhone 8 could have on Apple’s stock price and unit sales. Now, RBC analyst Amit Daryanani has expressed his own bullish attitude towards AAPL, but his expectations are based almost entirely on Apple’s Services sector.
Apple’s stock price continues hitting record highs as anticipation builds for the company’s upcoming spring iPad event and next-generation iPhones.
AAPL today closed at a high of 139.79 per share following several record breaking days over the last month. The stock price also hit a high for intraday trading today reaching 140.15 before closing. The record stock prices put Apple’s market cap at 733.74B, not far off from its highest ever $775 billion record achieved back in 2015.
Billionaire investor Warren Buffett certainly appears to have revised his view of Apple bigtime. Back in 2011, he famously said that his conglomerate Berkshire Hathaway had held very few AAPL shares in the past ‘and we’re likely to hold very few in the future.’ The reason, he said, was that the company’s future was too difficult to predict.
By May of last year however, the conglomerate held more than $1B worth of AAPL stock – a disclosure that helped the stock climb 9%. By December, that holding had increased to 57M shares worth $7.7B. Now CNBC reports that the company now holds 133M shares worth a staggering $17B …
Continuing its week of record-setting performance, AAPL stock hit yet another pair of all-time highs today. The stock closed at a new record high of $136.70, up from the previous all-time close record of $135.27 that was set last week.
Furthermore, AAPL hit a new intraday high of $136.75 today, up from the previous record of $136.27, which was set last week.
AAPL’s continued strong performance comes as Morgan Stanley analyst Katy Huberty raised her target price for the stock and made a handful of predictions for the upcoming iPhone 8…
Update: AAPL also saw a record closing price of $133.29. Following the Goldman Sachs price target increase, UBS released a report yesterday expressing the view that Apple’s services business is undervalued.
AAPL has opened at an all-time record high of $133.00 after Goldman Sachs raised its target price for the stock. Pre-market trading saw the price climb as high as $133.09 before it dipped a fraction before the market opened. At the time of writing, the stock is trading at $133.68, up 1.2%.
While the price is a record for market opening, it’s not quite the highest level the stock has ever reached …
Update: The stock continues to climb as the day progresses, now up 6.5% at around $129, which values the company at more than 670 billion dollars in market cap. It is also nearing Apple stock’s all time high of $135.
Last night, Apple reported all-time record earnings with revenue topping $78.4 billion, beating analysts consensus. The stock market investors appear to be pleased with Apple’s results; AAPL stock opened up more than 5%.
The company reported sales of 78.3 million iPhones, 13 million iPads and 5.3 million Macs. Spiking at over $127 this morning, Apple stock is once again close to its all-time high of $135 after rallying following Trump’s presidential victory.
When Apple announces its sales and revenue figures for the holiday quarter – calendar Q4 2016, Apple’s fiscal Q1 2017 – it will answer one crucial question. Following three straight quarters of year-on-year decline in sales, will the iPhone 7/Plus have been enough to return the company to growth, or will the quarter make it a full 12 months of decline?
December 28, 2016
A research note by UBS says that AAPL is the most ‘underweight’ stock in global fund management accounts, reports Business Insider. This means that they have a lower percentage of AAPL stock than you’d expect from the company’s ranking in financial indices.
If, for example, Apple represents 5% of the market value of the exchange, a fund manager would make 5% of his portfolio to have it balanced. If it’s less than this, say 2%, it’s underweight and a signal that the fund manager doesn’t think the stock will perform as well as the wider stock market or other particular stocks …
December 19, 2016
Apple has finally launched its legal challenge to an EU ruling that it must pay an additional €13B ($14B) in tax after a special tax deal offered by the Irish government was found to be illegal. The Irish government had already submitted its own appeal against the ruling, stating today that ‘Ireland did not give favourably tax treatment to Apple- the full amount was paid in this case and no state aid was provided.’
On the face it, the EU case is a strong one. The deal with the Irish government – detailed in a Bloomberg analysis – meant that the vast majority of Apple’s taxes were assigned to a ‘head office’ that wasn’t tax resident anywhere in the world, and which therefore paid no taxes at all. This is how, according to the EU case, Apple effectively paid as little as 0.005% tax on billions of dollars of European sales …
November 24, 2016
A Wells Fargo analyst has noted that Apple has ceased to disclose its advertising spend in its latest 10-K annual report, instead bundling it into a more general category of ‘selling, general and administrative (SG&A) expenses.’ Apple has in the past always specifically disclosed its ad spend, notes Business Insider.
Apple last year increased its ad spend by a massive 50% to a record $1.8B. While the 10-K suggests that this year’s spend is lower by one measure, Wells Fargo suggests that might not be telling the whole story …
November 21, 2016
Analysts are predicting that there is no end in sight to the decline in gross margin on the iPhone. Bernstein Research analysts (via Business Insider) are predicting that it will fall below 40% for the first time next year, and fall again to 39% in 2018. Other analysts agree.
A chart put together by the firm shows iPhone margins falling from 57.7% in 2009 to 40.8% this year, arguing that the costs of making next year’s iPhone and difficulty in charging more for it in a much more competitive environment will see it fall further over the next couple of years.
Morgan Stanley’s Katy Huberty, says that, ironically, the popularity of the iPhone 7 may have contributed to pressure on margins …
November 11, 2016