Apple's High-Class Problem

Updated

The following video is from Friday's Motley Fool Money roundtable discussion with host Chris Hill and analysts Jason Moser, James Early, and Ron Gross.

In this segment, hedge fund manager David Einhorn sued Apple in federal court this week, saying management needs to do more to unlock shareholder value. Since Apple has $137 billion in cash on the balance sheet, Einhorn is pushing for preferred shares of stock with a 4% dividend. While Apple disagrees with the plan, it has spurred the company to begin to look at taking action on its balance sheet cash. The guys discuss Apple's options in deploying capital back to shareholders.

The relevant video segment can be found between 0:24 and 4:12.


There's no doubt that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, after the company's recent backslide, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple and what opportunities are left for the company (and more importantly, your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

For the full video of today's Motley Fool Money, click here.

The article Apple's High-Class Problem originally appeared on Fool.com.

Ron Gross, James Early, Jason Moser, and Chris Hill have no position in any stocks mentioned. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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