Wednesday, October 27, 2010

Apple's $ 51 Billion Pile of Cash

With $ 51 billion of cash and investments on Apple's (AAPL) balance sheet, and an additional $ 4-5 billion/quarter showing up each quarter, there's plenty of speculation on how that growing pile of cash will be used. Here's what Steve Jobs said on the earnings conference call that only fueled that speculation:

"We strongly believe one or more strategic opportunities will come along we're in a unique position to take advantage of,"
and

"We don't let the cash burn a hole in the pocket or make stupid acquisitions. We'd like to continue to keep our powder dry because we think there are one or more strategic opportunities in the future."

Some examples of the recent speculation:
I doubt that most or any of these larger acquisitions are wise or even necessary. It will be very interesting to watch if all that capital can be put to use productively in the coming years.

A nice problem.

Adam

This site does not provide investing recommendations as that comes down to individual circumstances. Instead, it is for generalized informational, educational, and entertainment purposes. Visitors should always do their own research and consult, as needed, with a financial adviser that's familiar with the individual circumstances before making any investment decisions. Bottom line: The opinions found here should never be considered specific individualized investment advice and never a recommendation to buy or sell anything.