Tag Archives: apple

Microsoft, Apple, Alphabet Stand Strong As Technology Kings Of Cash

If cash is king, then Microsoft ( MSFT ) gets the crown among companies in the S&P 500, ending last year with $102.6 billion in cash and short-term equivalent on its balance sheet. But Apple ( AAPL ) leads when including long-term cash equivalents, holding a whopping $215.7 billion at year’s end, according to an analysis from FactSet Research. Long-term equivalents are investments that take more than one year to turn into cash. Following Microsoft in terms of cash and short-term equivalents is Google-parent Alphabet ( GOOGL ) at $73 billion. Next come General Electric ( GE ) at $70.5 billion, Cisco Systems ( CSCO ) at $60.4 billion, and Oracle ( ORCL ) at $52.3 billion. The information technology sector had the largest cash balance among the S&P 500’s 10 sectors, with $580.2 billion at the end of Q4, FactSet said. That’s been the norm over the past 10 years, it said. The tech sector’s holding were up 15% over Q4 2014, making it the only industry sector to increase its cash and short-term investments year over year. Following Microsoft, Alphabet, Cisco and Oracle in the IT sector, in terms of cash and short-term equivalents, is Apple at $38 billion, then Intel ( INTC ) at $25.3 billion. Big companies with lots of cash are in a strong position to make acquisitions. And companies with large balances of long-term investments, such as Apple, also demonstrate a greater degree of financial stability and flexibility. Following Apple and General Electric as having the biggest money horde overall, when including long-term equivalents, are Microsoft at $114.1 billion, Alphabet at $79.6 billion, and Cisco at $65.2 billion.

Apple Won’t Shake Up Alphabet, Android In Global Mobile Market

Apple ( APPL ) and its new suite of products won’t shake up Alphabet ( GOOGL )-owned Google Android, said Monness, Crespi, Hardt in an industry update Tuesday. Monness Crespi analyst James Cakmak called Apple’s new product launches that were announced Monday — items including a 4-inch iPhone, a lower-priced Apple Watch and iPad Pro, and updates to the company’s iOS and Apple TV — “lackluster at best.” While Apple’s new iPhone comes with a cheaper $399 entry point, “we believe it does little to disrupt Android’s stronghold on the global mobile market,” wrote Cakmak. “As of 2015, Android commands about 80% of the market vs. iOS at 15%, per IDC. To be sure, some will prefer the smaller form factor, but as far as changing the global mix, we see little potential shift, especially noting the influx of supply when iPhone annual upgrade plans come up for renewal.” Apple also is doing little to impact Google’s efforts in the Internet of Things, Cakmak said, with the actual front-runner so far turning out to be Amazon.com ( AMZN )‘s Alexa voice software — Amazon’s answer to Apple’s Siri, Google Now and Microsoft’s Cortana voice-activated personal digital assistants. And since “Apple is actually ahead of Google in encryption (due largely to the open-sourced nature of Android),” said Cakmak, that means “Apple fights the fight while Google can adapt accordingly.” He pointed to the FBI’s disclosure on Monday that it may not need Apple’s assistance after all to unlock an encrypted iPhone used by one of the San Bernardino, Calif., terrorist attackers, since investigators might have found another way to access it . “Should this hold, it would in tandem support Android’s encryption efforts,” Cakmak said. New iPad Said Still Behind Microsoft Surface On the tablet front, Cakmak said, “While the iPad Pro is looking to replace the laptop, we believe Microsoft’s Surface continues to hold an edge despite the latest updates from Apple.” Some investment banks, including Raymond James , are also expecting Alphabet’s Google division to become more competitive in cloud computing. As Google prepares to hold its cloud user conference, GCP Next 2016, in San Francisco starting Wednesday, Cakmak noted, “With Diane Greene making her first keynote in her senior vice president role, we expect to come away with a better understanding of Google’s angle in either placing more emphasis on the enterprise or storage. This can also provide better clarity into whether Microsoft or Amazon’s AWS should feel greater pressure.” Monness, Crespi maintains a buy rating and 900 price target on Alphabet stock. Alphabet stock was down a fraction, near 759, in midday trading in the stock market today . Alphabet “seemed to be in the shadows of Facebook in the first half of last year,” Rosenblatt Securities analyst Martin Pyykkonen wrote in a research report Tuesday. But Alphabet has gone on to outperform the market and finish “with a full year gain in the same range as Facebook, which was especially driven after new CFO Ruth Porat started at Alphabet in mid-2015.” Pyykkonen said Alphabet’s core business segments “are benefiting from most of the same key growth drivers as Facebook, including mobile, display and video ads, in addition to the longstanding core search advertising business. There has been increasing media attention on Facebook vs. Alphabet’s YouTube in terms of video advertising and revenue growth potential. We think there is room for both players within our current estimates through next year for each company, and video delivery is likely to remain different for each company.” Apple stock was up nearly 1% in midday trading Tuesday, near 107. Amazon stock was up a fraction, near 558.

Intel Might Dethrone Qualcomm In Apple iPhone 7; PC Sales Atrophy

No. 1 chipmaker Intel ( INTC ) remains in the running for an Apple ( AAPL ) iPhone 7 chip even as the smartphone-maker’s iPad Pro continues to gouge PC sales, a Summit Research analyst said Tuesday. Financially, gaining the iPhone 7 modem would be a “non-event,” accounting for $200 million in sales and 2 cents earnings per share ex items per quarter, Summit Research analyst Srini Sundararajan wrote in a research report. But it would allow Intel to undercut No. 3 rival Qualcomm ( QCOM ) which, teardowns show, has supplied the iPhone modem in at least the past four flagship iterations. Qualcomm has been an iPhone supplier since iPhone 4S, whereas Intel has never supplied an iPhone chip. “The implications from a prestige point of view — getting a socket into the iPhone, is likely to be seen as an achievement for Intel and a loss for Qualcomm,” Sundararajan wrote. ‘Dreadful’ January, ‘So-So’ February In midday trading on the stock market today , Intel stock was down a fraction following the death of former longtime CEO Andrew Grove, 79, a Silicon Valley and tech visionary largely credited with building the company into a powerhouse. He left as CEO in 1998 and left the board in 2004 — both moves precipitated by health issues — but remained an advisor. Sundararajan cut his price target on Intel stock to 38 from 40 on “PC doldrums,” but reiterated his buy rating. Sundararajan is the third analyst since February to cut his Q1 estimates for Intel on the weakening PC unit. Taiwanese PC shipments were “dreadful” in January and “so-so” in February, Sundararajan wrote. And “Apple’s release of the smaller iPad Pro and iPad Pro earlier should continue to cut incrementally into PC sales.” But Sundararajan doesn’t expect Intel to pre-announce new guidance . Intel previously guided to $14.1 billion in sales, plus or minus $500 million, suggesting 52 cents EPS ex items. That would be up 10% and 27%, respectively, vs. the year-earlier quarter. “To a certain extent, we feel that Intel’s mentioning weakness in China was an accurate presaging of what was to come, so we do not think that Intel’s guidance is likely to be that far off from actual results,” he wrote. Sundararajan cut his Q1 views to $13.8 billion and 45 cents vs. earlier expectations for $14.3 billion and 53 cents. He notes that Intel anticipates about $400 million in revenue from its completed Altera acquisition and an extra-week bump. The consensus of 46 analysts polled by Thomson Reuters models $13.96 billion in Q1 sales and 49 cents EPS minus items, up a respective 9% and 20%, on a year-over-year basis. For the year, Sundararajan now sees $57.9 billion in sales and $2.35 EPS minus items, down from $59.9 billion and $2.50. On average, analysts expect $58.77 billion and $2.40, up 6% and 3% vs. the year earlier.