Tag Archives: aapl

Apple Has Largest Cash Stockpile, Twice That Of Microsoft’s

Apple ( AAPL ) continues to reign as the Scrooge McDuck of the corporate world, keeping a virtual treasure vault of gold coins that it can swim in. Apple accounted for $215.7 billion, or 12.8%, of total corporate cash in 2015, Moody’s Investors Service reported Friday. That’s up from $178 billion, or 10.7%, in 2014, and $159 billion, or 9.7%, in 2013. The top five U.S. companies stockpiling cash, all tech companies, collectively held $504 billion, or 30% of the total corporate cash balance among non-financial companies. That’s up from $440 billion, or 27%, in 2014 and $404 billion, or 25%, in 2013. The top five are: Apple, Microsoft ( MSFT ), Google parent Alphabet ( GOOGL ), Cisco Systems ( CSCO ) and Oracle ( ORCL ). U.S. non-financial companies rated by Moody’s held $1.68 trillion in cash at the end of 2015, up 1.8% from $1.65 trillion at the end of 2014. But much of the cash is parked overseas, and U.S. companies are reluctant to bring it home, lest they face stiff tax penalties. Overseas cash is estimated at $1.2 trillion, or 72% of total cash. That’s up from $1.1 trillion, or 64% of cash in 2014, and $950 billion, or 58% of total cash, in 2013. Technology, health care/pharmaceuticals, consumer products and energy are the most cash-flush industries, with $1.3 trillion, or 71%, of the corporate cash total. The tech sector has the largest cash pile, at $777 billion, or 46%, of the total, Moody’s said. Microsoft, the second-most cash-rich company in the U.S., had $102.6 billion, less than half of Apple’s total. Alphabet came in third with $73.1 billion, followed by Cisco ($60.4 billion) and Oracle ($52.3 billion). Apple shares ended Friday trades up 1.1%. Microsoft and Alphabet finished the day up less than 1% on the stock market today . Cisco and Oracle each climbed 1.5%.

Apple Begins Retail Refresh With San Francisco Store

Apple ( AAPL ) on Saturday will open a new store at San Francisco’s Union Square, offering many new features and services that it will be rolling out to other Apple retail stores worldwide. Apple is evolving its store design and trying to make its shops into community hubs that entertain and educate visitors, Angela Ahrendts, Apple’s senior vice president of retail and online stores, said in a statement . The Union Square location features 42-foot-tall sliding glass doors at the entrance and a 6K video wall inside. The Genius Bar has been replaced by a Genius Grove, where customers can get support from Apple tech experts under a canopy of local trees in the center of the store. The Union Square store also boasts an art-filled outdoor plaza with seating, free Wi-Fi, a 50-foot “green wall” and regular acoustic music performances. Apple expects to add similar public spaces at other flagship stores. The store is powered by 100% renewable energy, including electricity produced by photovoltaic panels integrated into the building’s roof. At a press preview Thursday, Ahrendts said she wants to see Apple stores integrated with the community and become like town squares, the Verge reported . “This is more than just a store,” Ahrendts said. “We want people to say, ‘Hey, meet me at Apple.’ ” Apple shares were up 1.1% to 95.22 at Friday’s close on the stock market today . RELATED: Apple Has Largest Cash Stockpile, Twice That Of Microsoft’s Hedge Funds Dump Apple, Buy Facebook In Q1 .

PayPal Stock Undercuts Key Levels As Investor Day Fails To Ease Fears

PayPal ( PYPL ) shares fell Thursday, after the digital payments giant’s investor day showcased ambitious plans but failed to alleviate Wall Street’s fears of competition. Management emphasized the breadth of the platform, covering not only the traditional online payment capability but newer technologies at point of sale, ATMs, social media and customized applications for merchants. Executives hope to entice consumers to put more of their spending through PayPal by offering budgeting and money-management capabilities, while enticing merchants with the PayPal Credit offering. The OneTouch payment app has also taken off as a response to the increasing number of purchases made over mobile phones. Management also discussed the rise of “contextual commerce,” the trend toward technologies predicting consumer buying habits and bringing products to the consumer rather than the consumer going out and seeking them. Repeatedly, they pointed to the sheer size of PayPal’s network, after 17 years of existence, as bringing a key advantage over competing platforms in penetrating these new markets. However, Pacific Crest analyst Josh Beck wasn’t so sure. “PayPal highlighted a dramatic shift in commerce, underscored by diverging performance at Target ( TGT ) and Amazon ( AMZN ), which creates opportunity and risk,” Beck wrote in a research note. “Whether PayPal will be able to retain its competitive moat as Apple ( AAPL ), Amazon, Stripe and Visa ( V ) focus on mobile and contextual commerce remains unclear to us.” Beck retained a sector weight rating on PayPal stock. Margins Remain A Concern Management affirmed previous financial guidance, including that profit margins will be “stable to up.” Pretax margins took a definite hit last year as the company has invested in new projects, such as the recently acquired financial-remittance company Xoom. “While we believe management did an exceptional job explaining Paypal’s differentiation (serving both consumers and merchants; expanding relevance by providing solutions from Braintree, Paydiant, PayPal, Xoom and Credit), an intensifying competitive landscape, combined with the company’s margin outlook remain our biggest concerns,” wrote Sterne Agee CRT analyst Moshe Katri in a research note affirming his neutral rating. Credit Suisse analyst Paul Condra, who holds a buy rating on the stock, emphasized the positive. “Our conviction on the stock was strengthened from (1) commentary that the credit business is not more than high single digits percent of profit (well below speculation of around 25%) and will likely not grow beyond 2% to 3% of payment volume; and (2) increased visibility on growth outlook as management expects to double payment volume in four years, implying 20% total payment volume growth through 2019,” Condra wrote. PayPal stock fell 3.4% to 37.65 on the stock market today . It was seventh straight decline for the stock, which is now below entry points at 40.03 and 38.62. Apple stock fell 0.4% Thursday, while Visa dipped 0.7% and Amazon climbed 0.15%. RELATED: Apple Pay Rival MCX, Visa Loom At PayPal Analyst Day