Shares of Apple Inc. AAPL were trading nearly flat during Monday's trading session as several tech experts offered mixed feelings on the stock.
RBC Capital Market's Amit Daryanani commented in a note that Apple could "comfortably" boost its share repurchase and dividend plans by the tens of billions of dollars. However, Sean Udall, a notable tech expert, doesn't agree.
Speaking to Benzinga, Udall said that a move by Apple to increase its dividend and buyback is a "horrible idea."
"It's the definition of insanity," Udall also said. "They need to buy M&A and growth. Buying back stock is doing the same thing over and over again and expecting a different result."
Udall continued that Apple should focus on boosting its revenue growth through strategic M&A moves. He suggested that by spending $40 billion to $50 billion in M&A deals, the company could have realized a 7 percent to 10 percent hike in revenue.
Udall further argued that Apple should start with 1 to 2 "smallish" deals per quarter.
"If buybacks were the answer, Apple would be trading with a valuation premium versus a historically massive valuation discount," he concluded.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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