r/technology • u/geoxol • Jan 13 '23 • Bravo! 1 Helpful (Pro) 1

Apple CEO Tim Cook to take more than 40% pay cut Business

https://apnews.com/article/technology-apple-inc-tim-cook-business-d056553b10120c4a968b562cb7ece5d2
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u/Pokerhobo Jan 13 '23

This is correct and easy to look up. Apple has been continuously doing stock buybacks. They've never had close to $1T in the bank.

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u/Cthulhuonpcin144p Jan 13 '23 edited Jan 13 '23

Yeah I think their peak cash on hand was like 100(nvm) billion. I’m shocked at just how big their buybacks have been, the more you know ig.

Edit: the real numbers around 200-250 billion

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u/Sexy_Mfer Jan 13 '23

It definitely peaked higher than that, think it was close to 250b when the rumors of them acquiring Netflix was floating. They ended up buying back tons of stock instead

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u/Cthulhuonpcin144p Jan 13 '23

You’re right thanks for the correction. The hard part is they use with bonds and other stuff so the reports show only a portion of the $s

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u/manatwork01 Jan 13 '23

They did hit 1T in market cap at one point maybe thats where they were confused? (looked it up they are at 2T now but thats if apple owned all their shares, they don't, and sole them all at peak pricing at once which wouldnt happen it would tank the stock.

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u/Fuzzy1450 Jan 13 '23

There’s so many finance illiterate people on Reddit who think a company’s net value is all in cash, or somehow easily spendable.

A company’s net value isn’t even a real number. It’s an evaluation. An estimate. If Jeff Bezos (net worth 118 bil) wanted to buy 118 billion dollars worth of people suffering, he’d have to sell everything he owns to pay for it. (Or he could open more Amazon warehouses)

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u/manatwork01 Jan 13 '23

As someone who is on a ton of personalfi and investing subreddits it's kinda crazy how few people understand any of these most basic concepts.

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u/Fuzzy1450 Jan 13 '23

And yet they have such strong feelings about it. I bet the “it’s their choice to not pay workers decently” thinks apple is a hand rubbing, evil corporation bent on hoarding money and making employees suffer.

When really it’s just a misconception.

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u/manatwork01 Jan 13 '23

Just pointed out on a different thread where Americans (I am also American) were ganging up on a European for daring to say monthly paychecks were better and the people responding saying they would prefer weekly/biweekly because they would run out of money just screams no budget skills.

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u/SplitOak Jan 13 '23

That’s hysterical.

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u/SplitOak Jan 13 '23

Not to mention if Jeff Bezos started selling his shares to cash out the stock price would crash fast. And not only that, he has to get approval to sell off the stock; not like they are going to let him liquidate all of it. So many more restrictions that most people think of.

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u/AttyFireWood Jan 13 '23

Or more likely he would get loans secured by his assets.

Using Wikipedia as a source, Apple"

  • Had revenue of 394.33 Billion in 2022
  • Had profit of 99.8 Billion in 2022
  • Had assets valued at 352.76 Billion in 2022
  • Had a "Market Cap" of 2.125 Trillion as Jan 2023.

What is Market Cap? It's basically add the market price of all of the shares of stocks that a company has. So right now google says 1 share of Apple Stock is $134.06. Another google search says there are about 16 billion shares of Apple stock out there (16,030,382,000 to be precise). To 134.06 x 16 billion gives you the company's market cap, or what the market currently values the company at.

But there's a disconnect there - it only makes 100 billion in profits, and has 300 billion in assets, so how it worth 2 trillion? Beats me! But also, if someone buys a stock at $1, and then it goes up to $100, its the shareholder who is entitled to that $99, not the company. So its not Apple with all this money, its the shareholders. Apple probably owns a ton of its own stock, which it can sell periodically to raise money for things, and it will "buy back" the stock from the market, so its very complicated.

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u/Akitten Jan 13 '23

Apple probably owns a ton of its own stock

Err... not exactly how that works. Apple usually doesn't "own" any of it's own stock. When new shares are issue, existing shareholders are diluted, so their percentage of the pie becomes smaller.

But there's a disconnect there - it only makes 100 billion in profits, and has 300 billion in assets, so how it worth 2 trillion? Beats me!

Because future profit flow has to be taken into account. If I told you I had a box that would print out 1000 dollars a year. How much would you be willing to pay for that box? It's not a simple question.

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u/Jon_Snow_1887 Jan 13 '23

Because owning 100% of Apple entitles you to ~$100bn in profit per annum for the foreseeable future. That’s worth a lot of fucking money

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u/flimspringfield Jan 13 '23

You’re banned from /r/WallStreetBets

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u/LyrMeThatBifrost Jan 13 '23

I guarantee WSB has a better understanding of this stuff than the general Reddit population. Maybe not quite as much after the GME stuff happened and brought all those people in, but still.

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u/Lessthanzerofucks Jan 13 '23

Their peak cash holdings were around $270 billion, then they vowed to spend most of that if they got a good deal on repatriating that cash from Ireland to the USA. That’s ONLY a quarter trillion.

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u/demonicneon Jan 13 '23

Nobody said they ever did. They were valued at 1trill. People are dumb.

Value doesn’t = cash in the bank.

It’s all your stuff and cash added together.

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u/le_fuzz Jan 13 '23

If you look two comments up someone is trying to say that.

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u/demonicneon Jan 13 '23

Which is why I’m saying those people are dumb ?

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u/NotReallyChaucer Jan 13 '23

Not only can employees purchase stock at a discount, but also Apple gives RSUs every fall to each employee. Started in 2015.