Saylor Says 'Apple Should Buy Bitcoin,' As Cramer Says Buybacks Are Not Working
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
The saying goes, “What is good for the goose is good for the gander.” Could this also apply to investment strategies?
In recent years, several firms have turned to Bitcoin as a means to increase shareholder value after feeling they had reached a plateau. While experts debate the risk, so far, the ploy has worked for MicroStrategy (NASDAQ:MSTR) and Metaplanet. Both companies’ stocks have surged as much as 4,000% and 2,000%, respectively, since they started adding Bitcoin to their balance sheets.
Don't Miss:
-
Trade crypto futures on Plus500 with up to $200 in bonuses — no wallets, just price speculation and free paper trading to practice different strategies.
-
Grow your IRA or 401(k) with Crypto –unlock the power of alternative investments including a Crypto IRA within your retirement account.
So why not Apple (NASDAQ:AAPL)? That is the proposition MicroStrategy Chair Michael Saylor has recently made.
“Apple should buy Bitcoin,” Saylor said Tuesday on X.
Saylor's post was in response to remarks by CNBC host Jim Cramer.
“The Apple [stock] buyback is not working right now,” Cramer said. “The company can leave it to earn a lot, or it can take some and integrate. It is not a badge of dishonor. It just isn’t.”
Firms typically engage in stock buybacks as a way of signaling confidence in their business and returning value to shareholders.
Apple announced a $100 billion buyback at the start of May after reporting fiscal second-quarter revenue and earnings surpassing analysts’ expectations. Typically, these types of announcements are followed by a surge in share price. But as highlighted by Cramer, this has not been the case.
Trending: New to crypto?Get up to $400 in rewards for successfully completing short educational courses and making your first qualifying tradeon Coinbase.
At last look, Apple’s stock price is down over 3% since announcing the buyback and down 19% year-to-date. There are several reasons for this. For one, Apple CEO Tim Cook said at the time that the company had taken a $900 million cost hit due to President Donald Trump’s tariff policies. At the same time, the announced $100 billion buyback represented a $10 billion reduction from the previous year, indicating that the company wants to retain more cash amid uncertain economic conditions.
Unlike Apple’s stock, Bitcoin is up 16% since May and year-to-date. Meanwhile, MicroStrategy’s stock price has been unchanged since May but up 31% year-to-date.
Still, It is unclear whether Apple will be swayed by Saylor’s proposition. In 2021, Cook admitted to owning cryptocurrencies such as Bitcoin and Ethereum, stating that holding the assets made sense as part of a diversified portfolio. But he maintained that it was not something Apple was considering.
Content Original Link:
" target="_blank">
