Does anyone really care all that much that Apple missed their projected earnings this past quarter?
They shouldn’t. All you need to look at is this number: $117.2 billion. That’s the huge pile of cash they’ve accumulated and how that in the coming months and Christmas holidays, Apple will only sell more and more iPhones and iPads and add to this cash hoard:
Cash flow from operations rose 54% during the first 9 months of fiscal 2012 to $41.7 billion. Apple ended the quarter with a whopping $117.2 billion in cash, marketable securities and equity investments. That equates to $123.77 per share. (Yahoo Finance)
As people were saying on Twitter, Apple could buy up a lot of companies or sports teams with that cash. Apple could buy up all the teams in the NFL, NBA, NHL and MLB. They could buy Facebook, LinkedIn, Twitter, and Pinterest and still have $30 billion left over. But why in the world would they want to do that. It would be fun though if Apple did buy something out of the ordinary just because they could. But what…
As far as their stock though, with that much cash, Apple’s stock doesn’t really trade for around $570 a share right now but more like around $450 a share – once you subtract the cash. To me, this recent miss is nothing but a buying opportunity to the long term investor.
Here’s more from Bloomberg on Apple’s cash pile: With a market cap of more than $571 billion and and cash reserves of $110 billion (plus the $7 billion from last quarter), Apple is the richest company on Earth. And with just 60,000 employees, its available pocket money could buy the world an impressive menu of items. Bloomberg’s Adam Johnson reports.