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Apple Q4 Results

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21–30 of 61 posts

Re: Apple Q4 Results

#21

Net income was? Also this BS about stock buybacks and dividends to become cash neutral is stupid. They should be betting on moonshot things that will be the next iPhone instead of all of this financial engineering.

Giving the companies profits to the people who own the company is not "financial engineering". Apple has decided it cannot effectively use that money for R&D, so it isn't

Re: Apple Q4 Results

#22

Net income was? Also this BS about stock buybacks and dividends to become cash neutral is stupid. They should be betting on moonshot things that will be the next iPhone instead of all of this financial engineering.

Those moonshots are in the budget and excess cash doesn’t have anything to do with a lack of moonshots.

Re: Apple Q4 Results

#24

Earlier quoted context omitted.

As the owner of a company (a shareholder) it is desirable because if your company isn't in the business of capital allocation then excess cash accumulation is reducing their ROE and your ROI. And yes, the company still has to grow. But as a company executive you are viewing existing and new business opportunities through their net present value. If you don't have business opportunities that meet the thresholds you ha…

Why do you say the company has to grow?

Perhaps it’s the P/E ratio in valuation. If a company isn’t growing the premium portion of its stock price reduces and the stock price drops.

TLDR; stock price includes a portion reflecting increased future growth

Re: Apple Q4 Results

#26
post #12

Is it too early to tell how much the Apple Card contributes to Apple's revenue?

Apple Card is likely one of those services which will have little impact on revenue and earning, but outsized impact on stickiness of the iPhone as a platform. If you prefer Apple Card and the way you interact with it, it's going to be that much tougher to move to Android.

Re: Apple Q4 Results

#27

Net income was? Also this BS about stock buybacks and dividends to become cash neutral is stupid. They should be betting on moonshot things that will be the next iPhone instead of all of this financial engineering.

If finding "the next iPhone" just required spending large enough sums of money, then Microsoft would have beat them to the punch before the iPhone came out.

In all of history there have only been a few iPhone class disruptors. They are rare, and they come based more on timing and the presence of enabling technologies than any particular company simply investing billions in R&D.

Re: Apple Q4 Results

#28
just last year I thought how much more can they grow now that they're over a trillion dollar market cap? Now I see people lining up for disposable $250 earbuds and now I know. (the same people that were happy with their terrible $15 ones btw)

Re: Apple Q4 Results

#29

Earlier quoted context omitted.

As the owner of a company (a shareholder) it is desirable because if your company isn't in the business of capital allocation then excess cash accumulation is reducing their ROE and your ROI. And yes, the company still has to grow. But as a company executive you are viewing existing and new business opportunities through their net present value. If you don't have business opportunities that meet the thresholds you ha…

Why do you say the company has to grow?

They have to provide a risk-weighted return similar to the current average stock, otherwise they should be revalued to the point at which they would provide that.

Re: Apple Q4 Results

#30

What exactly is the advantage of reaching a cash neutral position? If you are a company that can reliably do that does that mean you no longer have to grow — since your investors are primarily attracted to a reliably stable ability to generate dividends?

One benefit is that people will stop writing dumb posts about what companies you should buy
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