Re:Alphabet overtakes Apple to become most cash-rich company
by crazygringo on Friday August 02, 2019 @07:17PM
(#20597465)
It's a silly dichotomy.
Investors want companies to invest where it makes competitive sense, in the amount that makes competitive sense, and return a dividend (or do buybacks) for all the cash beyond that.
Investors only invest for the dividend/buyback ultimately -- if it didn't exist, every stock would be valued $0.
I think it's perfectly clear to anyone that all of the tech Big 5 are plenty profitable enough to innovate plenty and also provide dividends/buybacks.
The criticism is perhaps valid for a company 1/100th the size of Google, or maybe even 1/10th... but certainly not current Google-size.
Investors want companies to invest where it makes competitive sense, in the amount that makes competitive sense, and return a dividend (or do buybacks) for all the cash beyond that.
Investors only invest for the dividend/buyback ultimately -- if it didn't exist, every stock would be valued $0.
I think it's perfectly clear to anyone that all of the tech Big 5 are plenty profitable enough to innovate plenty and also provide dividends/buybacks.
The criticism is perhaps valid for a company 1/100th the size of Google, or maybe even 1/10th... but certainly not current Google-size.