Apple's Growing Problem (AAPL)

Apple's Growing Problem

The following video is from Wednesday's MarketFoolery podcast, in which host Chris Hill, along with analysts Matt Argersinger and Andy Cross, discuss the top business and investing stories of the day.

According to a Moody's Investors Service report, Apple (NASDAQ: AAPL ) could have $170 billion in cash by the end of the year if the company doesn't increase its dividend or its share-buyback program. How should Apple (NASDAQ: AAPL ) deploy its cash? Should Apple borrow a page from Google (NASDAQ: GOOGL ) and start funding other businesses and initiatives?

There's no doubt that Apple is at the center of technology's largest revolution ever and that longtime shareholders have been handsomely rewarded, with more than 1,000% gains. However, after it's major backslide recently, there is a debate raging as to whether Apple remains a buy. 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 your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

The relevant video segment can be found between 12:36 and 18:51.

For the full video of today's MarketFoolery, click here.

Andy Cross has no position in any stocks mentioned. Chris Hill has no position in any stocks mentioned. Fool contributor Matthew Argersinger owns shares of Apple and has options on Apple and Intel. The Motley Fool recommends and owns shares of Apple, Google, and Intel. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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 icon found on every comment.

Report this Comment On March 20, 2013, at 8:26 PM, tychicum wrote:

I absolutely want AAPL to RETAIN THE CASH HOARD and not listen to the kooks from Wall Street.
Talk about a lock solid hedge .. like money in the bank.
Report this Comment On March 20, 2013, at 9:08 PM, Jjkiam wrote:

Yes this is the kind of problem no company in history has ever had to deal with . Another great misleading headline to catch our attention. Since when is having too much income ever been a "problem"? How hilarious! I agree that as an Apple investor in for the long haul, I don't want Apple to react to this ridiculous climate of media doom that has become the prevalent media meme. I want Apple to act only in what current management believes is in the best LONG term interests of the company. Apple already has a very decent dividend and should ONLY make decisions based on how they perceive the future growth of the company depends. If Apple starts to make decisions based on all the analysts chatter and negative spin, they will destroy the company. Stay the course and follow the same path Steve Jobs followed which was to COMPLETELY disregard Wall Street
Report this Comment On March 20, 2013, at 9:25 PM, thunderboltnova wrote:

Ka-ching! Thanks people for driving this stock up. Time to sell is soon! The kind folks at Apple don't have a clue. Lack of innovation, no idea what to do with more money than you can shake a stick at and competition coming in like a bull after cows.
Report this Comment On March 20, 2013, at 9:54 PM, Jjkiam wrote:

Yes clearly Apple is completely doomed because they have "more money than to shake a stick at"
Clearly you have never been in an Apple store and had support from the Genius Bar or used Apple Care to help you. These are competitive advantages that are not going away anytime soon and once again I repeat that the statistics of customer retention and satisfaction are not minor details that Samsung or any other Apple competitor can match.
Report this Comment On March 20, 2013, at 11:32 PM, thunderboltnova wrote:

Until Cook shows us some special talent, Apple will be a trade and not a long term investment. There's nothing wrong with the company at the moment, it's the stock. It went from $9 in 2001 all the way where it is now. It appears all the great news is priced in. We also had CNBC pounding the table on this stock for a long time. That sort of advertising always seems to get people in trouble.