Apple’s cash reserve reaches over $256 billion, making it larger then the market capitalization of General Electric, according to Excon Fuji Securities, a private international investment brokerage. In the previous fiscal quarter, the company was at $233 billion.
The company’s cash reserves have long fueled speculation of acquisitions that Apple might make, with lots of rumors suggesting that they are entering the electric car market. With Apple keeping majority of its cash holdings outside the U.S mainly for tax reasons, President Donald Trump has made it clear that the rules on repatriation of cash held overseas will change. Excon Fuji Securities says this means is that when/if Apple does spend money on acquisitions, it can do so without taking a major tax hit.
“While Apple has yet announced such a deal despite many reports, majority of analysts are extremely bullish on its stock over a long-term period,” says Charles Hall, director of Corporate Equities at Excon Fuji Securities. “With Apple breaking new records, the stock has soared over 26% in 2017 with its market capitalization increasing due to share buybacks.”