Apple’s Capex-Light Business Model, Apple’s Excess Cash Position, Apple Buyback vs. Apple Dividends
Today's Above Avalon Daily email contains the following story:
Apple’s Capex-Light Business Model
Apple’s Excess Cash Position
Apple Buyback vs. Apple Dividends
Hello everyone.
The initial plan was to begin going over Big Tech CY3Q24 earnings. There are a few new ideas worth trying out to get caught up quickly and efficiently. While we will still do that, a few incoming questions from members late yesterday led me to change the schedule around.
For the past two weeks, we have gone deep into Apple’s latest financial results. Yesterday, we went over everything share buyback. A somewhat simple question was raised. Is Apple doing the right thing?
The company is generating $100B+ of free cash flow per year and pouring it all into share buyback (and dividends). Is that the right strategy given where we are in the current generative AI / spatial computing environment?
It’s a worthy discussion to have in today’s update.
There are two topics in particular worth addressing:
Is Apple investing enough in its business?
Is Apple making the prudent decision with what is deemed excess cash?
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