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

Volcker Critical of Delays in Namesake Rule

Friday, 19 Dec 2014 17:16 PM

Former Federal Reserve Chairman Paul Volcker on Friday criticized a decision to delay full implementation of a rule that . . .

Stocks Rise in Best Week Since October as Energy Industry Gains

Friday, 19 Dec 2014 16:56 PM

Oil and gas companies led the stock market up Friday, helping the Standard Poor's 500 index notch its second-best week . . .

Fed's Williams Sees June as Time to Start Considering Higher Rates

Friday, 19 Dec 2014 15:10 PM

Federal Reserve Bank of San Francisco President John Williams said next June will be the right time to consider when to  . . .

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