Re:Big Tech to EU: "Drop Dead"
by bitpush on Sunday May 19, 2024 @03:21AM
(#40404934)
Apple's cash reserves are not infinite. And any desperate attempt to "hold up" the price will be punished by the market. This is very different from usual $15B stock buyback, which you can explain but try doing it with $200B and you are seriously weakening the company.
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| on HN ]
The executives role is to increase share price and Company evaluation for shareholders.
If all you can do is sit on a pile of cash without any good ideas on how to turn that cash into larger profits, or you just burn it to buy stock back or give dividends, it is a way of saying “I have no vision for the future of this company, I don’t know what else we can do, we will not continue to grow aggressively, so might as well take the cash dear shareholder”
Not a great move in front of the board. Done marginally is fine, sends a “we made more that we can use” cocky statement. Doing it massively to keep stock afloat, means you are out.