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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Apple Share Buyback Hits Record High, A “Shrinking” Apple
Today's Above Avalon Daily email contains the following story:
Apple Share Buyback Hits Record High
A “Shrinking” Apple
Happy Tuesday. Today’s update will have a share buyback theme. While we received a few new buyback data points in Apple’s 2024 10-K, the discussion won’t be focused on just 4Q24 trends.
Let’s jump right in.
Above Avalon membership is required to read this update. Members can read the update here.
Above Avalon Membership
Choose either a monthly or annual membership. Payment is hosted by MoonClerk and secured by Stripe. Apple Pay and other mobile payment options are accepted. After signup, use this link to update your payment information and membership status at any time. Contact me with any questions.
Contact me directly if you would like to purchase multiple subscriptions (five or more) for your team or company.
Member Privileges and Benefits
Become an Above Avalon member and receive the following privileges and benefits:
Exclusive Analysis. Receive my daily newsletter and reports containing analysis and perspective, 100% related to Apple.
Member Archive. Access all previous analysis sent to members.
Member Forums. Interact with other members in the Above Avalon team in Slack.
Priority Email Access. Receive timely responses to all email inquiries.
Access to Add-ons. Customize a membership with the Podcast, Inside Orchard, and Financial Models add-ons.
Above Avalon Support. Play an active role in supporting Above Avalon as an independent voice and resource.