Apple sits on a huge pile of free cash flow that acts as a giant shock absorber. Even if global consumer demand slows down, Apple has one of the largest corporate share buyback programs.
Chips might crash but millions of loyal Apple users will continue to pay a monthly subscription fee for iCloud storage, Apple Music and apps. That recurring revenue is an unshakeable source of revenue for Apple.
However chip corrections offer the golden opportunity to buy the best chip stocks at a discount. When the chips rally restart, you are able to ride the upward momentum to the moon.
As Warren Buffett likes to say, when there is fear in the markets, it is time to be greedy.
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- riffyΒ·08-31TOPThe cash pile matters, but the shrinking net cash is doing shareholder returns a lot of work too. Buybacks plus services revenue make Apple feel way less fragile here1Report
- zumaΒ·09-02thx1Report