Revealed: Here's Where Apple's Cash Is Headed

Think you take retail therapy seriously? Think again. Speaking at a Goldman Sachs investor conference, Tim Cook said Apple's (NASDAQ: AAPL  ) retail stores are like "Prozac" for when he's feeling down, The Wall Street Journal reports.

Cook made the comments in a speech that offered a vigorous defense of Apple's capital allocation practices. Activist investor David Einhorn has targeted the firm for failing to distribute more of its $137 billion treasure trove to shareholders.

What does retail have to do with Einhorn's griping? Nothing directly, but Cook said that Apple plans to invest heavily in its retail stores by upgrading 20 existing locations, and adding 30 more in various spots around the world. In the video below, Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova applauds the idea, and suggests that Apple get even more aggressive with its retail operations. Please watch, and then be sure to leave a comment to let us know what you think.

Despite its success, retail remains a small part of Apple's global operations. There's much more to know before determining whether Apple remains a buy. Fortunately, The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and more importantly, your portfolio) going forward. To get instant access to his latest thinking on the stock, simply click here now.


Read/Post Comments (3) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 15, 2013, at 9:20 PM, cody9684 wrote:

    Update 20 stores and add 30 more. That will use less than 1 billion on the cash.

  • Report this Comment On February 15, 2013, at 9:44 PM, Doyle3000 wrote:

    it's fantastic marketing though. If they don't have a store in say Turkey, you open 1 in downtown Istanbul and all the rich and middle class want their stuff immediately. You can rinse and repeat with every major city in the world.

    i cannot believe this stock is trading below $500 knowing its future profit dollars

  • Report this Comment On February 15, 2013, at 11:38 PM, 8ballbill100 wrote:

    You are not talking about a great deal of money to open 50 retail stores, they need to either aquire or give a special dividend. Any time you have that much cash there will be people looking for ways to get their hands on it as is happening now, the next thing you know someone will file a class action sute.

    I know some of the cash is in foreign countries and if they bring it home the goverment will take a big chunk but thecash allready here should be distrubeted by some means weather div. os splits.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2259994, ~/Articles/ArticleHandler.aspx, 9/15/2014 12:22:33 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement