Apple is cash rich. In fact, cash accounts for 40% of the company's share price. Though Microsoft comes close, with cash accounting for about 30% of its share price, Apple looks dirt cheap compared to Intel , Google , and Amazon when measured by cash per share.
Apple attempted to solve this problem with a boost to its dividend and share repurchase program. But is the world's largest share repurchase program large enough for Apple? If Apple continues to generate cash at today's levels, after its $100 billion program to return cash to shareholders through dividends and repurchases expires, the company could still have the same $144.7 billion it has today. Does this mean Apple should pay out even more cash? In the video below, Fool contributor Daniel Sparks shares his take on the matter.
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, 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 your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.
The article $50 Billion Is Big, but Not Big Enough originally appeared on Fool.com.
Fool contributor Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Apple, Google, and Intel. The Motley Fool owns shares of Amazon.com, Apple, Google, Intel, and Microsoft. 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.