After paying taxes, Apple's true cash level is $100 billion. Since Apple may distribute or acquire something with this cash, Apple has moved up $25 billion in market cap, so that is a 25% return being given to spending the $100 billion. Good luck with this thinking. Pump and dump. Take the gift $25 billion.
You have to understand how this business works to get why this is such a big deal. It's not about arguing about innovation or growth or margins or any of that. It's about how shareholders are rewarded for company profits. basically (FCF).
The company can do 5 things with the $
1) reinvest it to continute to grow - organic or acquisition
2) borrow against it and issue shares with a higher dividend (PS). This lets you leverage cash overseas without paying taxes, until the regs change and a tax holiday shows up, if it does.
3) Buyback shares which will increase the EPS.
4) Increase the dividend for common shareholders
5) Do nothing, just set on it.
To this point AAPL has done #5. Einhorn's deal was huge, and the company saying they are considering one of the other 4 options unlocks the value of the business, and rewards shareholders, hence folks coming back into the stock. That's the driver, and with $20B+ of FCF, there's a ton of value to unlock. And, it brings in a different type of investor as well.
I hope that helps, most of the comments were pretty irrelevant. I'm long the stock, and have no idea where it will close today or next week of 6 months from now. But I do know I enjoy being invested in a company that prints a hell of a lot of money, and will, at some point return that. Yesterday's news says that AAPL management is considering it. They do it, and this could go up big time.
Good luck to all.
Sentiment: Strong Buy