Apple, Alphabet, Microsoft, Amazon, and Facebook have become the most valuable public companies in the world.

Olivia London

2017-05-13 07:28:00 Sat ET

America's Top 5 tech firms, Apple, Alphabet, Microsoft, Amazon, and Facebook have become the most valuable publicly listed companies in the world. These tech firms are worth $2.9 trillion in total market capitalization, generate about $150 billion annual net income, and hoard $350 billion in net cash.

In fact, these tech giants hold about 80% of their cash stockpiles in offshore tax havens. In addition to their precautionary motive to maintain massive cash to safeguard against a potential global credit crunch and refinancing risk due to short debt maturity, there is a genuine and legitimate reason for these tech firms to engage in active, effective, and legitimate tax avoidance.

In the next few years, these tech firms plan to implement share repurchases to return decent and generous cash distributions to their shareholders.

In the highly probable scenario of a key Trump tax holiday for U.S. multinational corporations, these tech firms can repatriate $300+ billion to invest in onshore job creation, technological innovation, and manufacturing automation without any draconian tax penalties. These tech firms may repatriate sufficient cash to invest in new acquisitions of smaller startups that specialize in a broad range of proprietary technologies such as artificial intelligence, digital media, robotic automation, and virtual reality.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Santa-Barbara political economy professor Benjamin Cohen proposes new fiscal stimulus to complement the current low-interest-rate monetary policy.

Daphne Basel

2019-08-28 14:46:00 Wednesday ET

Santa-Barbara political economy professor Benjamin Cohen proposes new fiscal stimulus to complement the current low-interest-rate monetary policy.

Santa-Barbara political economy professor Benjamin Cohen proposes new fiscal stimulus to complement the current low-interest-rate monetary policy. Cohen fin

+See More

The Biden Inflation Reduction Act is central to modern world capitalism.

Andy Yeh Alpha

2023-02-28 11:30:00 Tuesday ET

The Biden Inflation Reduction Act is central to modern world capitalism.

The Biden Inflation Reduction Act is central to modern world capitalism. As of 2022-2023, global inflation has gradually declined from the peak of 9.8% d

+See More

E.U. antitrust regulators impose a fine on Qualcomm for advancing its exclusive microchip deal with Apple.

Fiona Sydney

2018-01-17 05:30:00 Wednesday ET

E.U. antitrust regulators impose a fine on Qualcomm for advancing its exclusive microchip deal with Apple.

European Union antitrust regulators impose a fine on Qualcomm for advancing its key exclusive microchip deal with Apple to block out rivals such as Intel an

+See More

Mike Pompeo switches his critical role from CIA Director to State Secretary in a secret visit to North Korea.

Peter Prince

2018-04-13 14:42:00 Friday ET

Mike Pompeo switches his critical role from CIA Director to State Secretary in a secret visit to North Korea.

Mike Pompeo switches his critical role from CIA Director to State Secretary in a secret visit to North Korea with no regime change as the North Korean dicta

+See More

Fed Chair Janet Yellen confirms with her successor Jerome Powell the final interest rate hike in December 2017.

Joseph Corr

2017-12-14 12:41:00 Thursday ET

Fed Chair Janet Yellen confirms with her successor Jerome Powell the final interest rate hike in December 2017.

Federal Reserve raises the interest rate by 25 basis points to the target range of 1.25% to 1.5% as FOMC members revise up their GDP estimate from 2% to 2.5

+See More

The current Trump stock market rally has been impressive from November 2016 to October 2017.

John Fourier

2017-10-09 09:34:00 Monday ET

The current Trump stock market rally has been impressive from November 2016 to October 2017.

The current Trump stock market rally has been impressive from November 2016 to October 2017. S&P 500 has risen by 21.1% since the 2016 presidential elec

+See More