NEW YORK, NY / ACCESSWIRE / February 13, 2018 / Shares of Apple were gaining on Monday with the tech giant leading the way for other Silicon Valley stocks to rally. Goldman Sachs thinks Apple may soon be looking into an acquisition possibility after having money available overseas after it pays taxes. Shares of Microsoft also headed higher despite a lawsuit from IBM for "poaching" its chief diversity officer.
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Apple Inc. shares closed high in the green up 4.03% yesterday on roughly double trading volume compared to usual. The stock was the biggest gainer in Bloomberg's index of Silicon Valley's largest tech stocks. According to Goldman Sachs, the iPhone maker could be ready to go on an acquisition hunt. Goldman Sachs analysts led by Rod Hall, said that "after paying taxes, Apple will have about $200 billion in newly available overseas cash to play with." The firm said, "On M&A in particular, Apple's ability to unlock its significant overseas cash balance likely provides potential for larger acquisitions than the company's historical preference for tuck-in deals." The firm also said, "We see capacity for several cash usage scenarios including an increased buyback (GSe $192bn over FY18-FY20), a higher dividend payout, and larger, more meaningful M&A, all of which could be positive events for the stock." It was also revealed that Apple, as well as LG, Immerex, Stillwater Holdings, and Valve, are together investing $10.6 million into eMagin, the leading manufacturer of active-matrix Organic LED (AM-OLED) microdisplays on silicon. eMagin will use the proceeds for "working capital and general corporate purposes."
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Microsoft Corporation shares closed up 1.08% on about 35.8 million shares traded yesterday. The company has recently hired a chief diversity officer which has led to IBM suing the company. According to IBM, Microsoft has "poached" its chief diversity officer and human resources executive, Lindsay-Rae McIntyre. It was on Monday that a court issued a temporary restraining order that does not allow McIntyre to work at Microsoft until further notice. IBM said in a statement, "McIntyre was at the center of highly confidential and competitively sensitive information that has fueled IBM's success in these areas. While we understand Microsoft's need to deal with mounting criticism of its record on diversity, IBM intends to fully enforce Ms. McIntyre's non-compete agreement to protect our competitive information."
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