Tags: Apple | spend | cash | Bilton

NYT's Bilton: Maybe Apple Can Spend Its Cash Trove on Buying Mars

Wednesday, 09 Apr 2014 07:09 AM

By Dan Weil

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Apple has the largest cash reserve of any company outside the financial industry — $159 billion, according to Moody's Investors Service.

But the company has indicated a reluctance to spend that money on acquisitions like the kind that have recently made headlines for Facebook and Google.

Apple may be hoarding some of its cash in case it faces financial troubles in the future, Rick Lane, a Moody's analyst, told The New York Times. Apple once fell on "very difficult times, and had to rely on, in part, the kindness of others," he noted.

Editor’s Note:
Retire 10 Years Earlier With These 4 Stocks


"Without having to rely on the capital markets, which can be mercurial, it's a kind of self-insurance to have that cash on hand for the times when things go bump in the night," he said.

The Times' Nick Bilton offered several suggestions for what Apple can do with its cash.
  • It could buy Mars. "NASA scientists recently said a human mission to Mars with the goal of building a colony would cost about $160 billion. NASA even floated the idea that big corporations could sponsor the trip," Bilton wrote.
  • Apple could buy Tesla, the electric car maker, which is valued at about $30 billion.
  • As telecommunications companies are so important to Apple, it could buy T-Mobile, which is valued at about $26 billion, Bilton said.

Morningstar analyst Brian Colello offered praise for Apple, but with caveats.

"Although Apple has a sterling brand, robust product pipeline and ample opportunity to gain share in its various end markets, short product life cycles and intense competition will prevent the firm from resting on its laurels or carving out a wide economic moat," he wrote on Morningstar.com.

Editor’s Note: Retire 10 Years Earlier With These 4 Stocks

Related Stories:

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Researcher Ash: 'Odds Very Slim' Russian Central Bank Will Dare Sell Any Gold'

Sunday, 21 Dec 2014 18:35 PM

Some financial commentators have speculated that the ruble's plunge - it has dropped 44 percent against the dollar so fa . . .

Former Russian Finance Minister: 'We Have Entered Full-Blown Economic Crisis'

Monday, 22 Dec 2014 09:39 AM

Russia faces a "full-blown economic crisis" next year that will trigger a series of defaults and the loss of its investm . . .

Hoover's Sperry: Unstable Mortgages Will Fuel Next Housing Collapse

Sunday, 21 Dec 2014 18:20 PM

Washington is pushing housing loans down the same path that led to the last financial crisis, says Paul Sperry, a media  . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved