Tag Archives: msft

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%.

Yahoo Could Fetch Less Than Expected; Stock Falls

Yahoo ( YHOO ) stock fell Friday on speculation the Web portal’s buyout offers might be less than half of what most observers had been expecting, amid a second round of bidding. Yahoo stock fell 1.4% to 36.50 in the stock market today .  That gives it a market valuation of roughly $35 billion, but almost all of its value is comprised of big stakes in China e-commerce giant Alibaba ( BABA ) and in Tokyo-listed Yahoo Japan. Verizon Communications ( VZ ), which bought AOL last year, has been viewed as the front-runner to buy Yahoo, although private equity firms have also been kicking the tires. There’s been speculation that Microsoft ( MSFT ), which has a search partnership with Yahoo, could team with a private-equity firm, or that Warren Buffett’s Berkshire Hathaway ( BRKB ) might back a bid by Quicken Loans founder Dan Gilbert. Some early estimates put possible bids in the $5 billion to $8 billion range for the core Yahoo business, which excludes Alibaba and Yahoo Japan. As many as 10 bidders have taken part in presentations led by Yahoo CEO Marissa Mayer, according to reports. The Wall Street Journal, however, reported late Thursday that some PE firms might offer as little as $2 billion to $3 billion, or not bid at all. And Verizon, too, might offer a lower bid, says the report, citing unidentified people familiar with the matter. Yahoo has set a deadline in the first week of June for the next round of bids. Verizon, which bought AOL in 2015 for $4.4 billion, aims to morph into a digital media company that garners more advertising revenue, as wireless data competition mounts.