Historically, Apple (NASDAQ:AAPL) has played it conservative when it comes to acquisitions. The company generally never spends more than $500 million on any purchase. That might all be changing though, as Tim Cook has hinted that "huge" acquisitions are not off the table if it's the right fit for the long term. The price of innovation is going up, and it makes little sense to stick with an arbitrary monetary limit -- especially when you consider how much cash Apple has sitting around.
Google (NASDAQ:GOOGL) has been scooping up companies left and right, giving it optionality into future technological breakthroughs. Even Microsoft (NASDAQ:MSFT) has always been far more acquisitive than Apple. As a result, both Google and Microsoft have much more sitting on the balance sheet in the form of goodwill and intangibles. That theoretically increases their impairment risk. At this point, Apple can afford to take more acquisition risks.
In this segment of Tech Teardown, Erin Kennedy discusses Apple's new approach to acquisitions with Evan Niu, CFA, our tech and telecom bureau chief.
Opportunities to get wealthy from a single investment don't come around often, but they do exist, and our chief technology officer believes he's found one. In this free report, Jeremy Phillips shares the single company that he believes could transform not only your portfolio, but your entire life. To learn the identity of this stock for free and see why Jeremy is putting more than $100,000 of his own money into it, all you have to do is click here now.
Erin Kennedy owns shares of Apple. Evan Niu, CFA owns shares of Apple. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.