Apple: Massive Decline In Net Cash


  • Apple’s net cash position has dipped below $50 billion.
  • The net cash position can support less than six quarters when we include cash flows from operation.
  • The buybacks have been a strong tailwind for Apple stock over the last few years which has allowed the stock price and EPS to increase significantly faster than net income.
  • Apple also needs to conserve cash for services like TV+ which would require massive investment over the next few years.
  • As the tailwind of buybacks subsides, we could see a correction in the stock price in the next few quarters.

Apple Store

Nikada/iStock Unreleased via Getty Images

Apple (NASDAQ:AAPL) has been rewarding shareholders with dividends and buybacks over the last decade. It has spent a whopping $715 billion on dividends and buybacks since the program began in 2012. Currently, the company is investing close

Net cash position of Apple over the last few years.

Company data

Trend in Apple’s stock price, net income, revenue and outstanding stock.


Churn rate of TV+ is a lot higher than other players.


Apple’s valuation multiple and revenue growth in comparison to Meta and Alphabet.


Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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