analysts are now wondering where the cash has gone in their reports.
Apple (AAPL) Morale Low, Employees Consider Jumping Ship
China, Fed Worries Drive Yields Higher and Stocks Lower
June 24, 2013 10:43 AM EDT Send to a Friend
Moral at Apple (Nasdaq: AAPL) is low and some employees are bailing for jobs at Google (Nasdaq: GOOG), LinkedIn (NYSE: LNKD), Facebook (Nasdaq: FB), and even PC-maker Hewlett-Packard (NYSE: HPQ), according to analyst Trip Chowdhry of Global Equities. The reason for the exodus is Apple's dismal stock price.
"Employees are viewing lower Apple Stock price as an indication of a bleak future for Apple," said Chowdhry, after speaking to a large number of employees at various tech conferences.
Interesting, from an employee perspective, Apple's recent increase to its dividend and stock buyback is having a negative effect on morale, since it has done little to lift the stock's price and is draining cash.
"After announcing a record $100 billion in share buy backs and dividends, Apple stock is close to 52 week lows, and this is causing serious employee retention problems at Apple . . .Returning the cash to shareholders has only caused a detrimental effect on the balance sheet and the stock price – some are even beginning to wonder where was the cash going," said the analyst.