Currently, the public markets think its worth $535 billion, a full $50 billion more than Alphabet.So, when AAPL stock owners learn that the company just took to the debt markets to raise $12 billion, theyll be excused for scratching their heads. The move is even more confounding when youre poking around researching AAPL stock and you take a gander at its financials.
On its balance sheet, you’ll see that Apple Has $216 Billion in Cash. You dont have to know much about the stock market to sense that theres something nonsensical about borrowing money when you have more than enough cash to finance anything you need.
The $12 billion doesn’t materially change things for AAPL stock. The company will use the funds for “general corporate purposes,” which is exceptionally vague but means that Apple could use the money for things like paying off other debt, or even making an acquisition.
Hey, now that I think about it … isn’t it curious that Apple just borrowed $12 billion — Twitter Inc‘s (TWTR) current market cap?
Full story on investorplace.com