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Google's parent company, Alphabet, has surpbaded Apple to become the world's richest cash company. The Financial Times reports that in the second quarter of this year, Alphabet had $ 117 billion of cash reserves, against $ 102 billion for Apple.
In spite of the obvious advantages of keeping such a large amount of money, the title of "Cash King" might not give rise to many celebrations. As the FT It should be noted that such a display of wealth could increase the pressure of shareholders who would like the company to spend a greater portion of its money on stock repurchases or dividends, and could lead to increased scrutiny of regulators affected by Google's dominance. In the last two years, the EU and its parent company have been victims of antitrust fines of 8.2 billion euros (about 9.05 billion dollars). In addition, the US legislator is very vigilant.
Apple has played an important role in changing leadership by actively reducing its liquidity. Since 2017, the iPhone maker's reserves have fallen by $ 61 billion from the $ 163-billion peak. Apple took advantage of US tax reforms to repatriate overseas reserves and return them to investors. At the same time, Alphabet's cash reserves increased by $ 20 billion over the same period, despite mbadive investments in real estate, as the company purchased space for offices and data centers.
Aside from the cash title, obtaining the title of "Most Valuable Company" remains elusive for Alphabet. Apple was the first to break through last August, but since then its market capitalization has declined. Apple has now been surpbaded by both Amazon and Microsoft, which is the only company currently to have a market capitalization of more than $ 1 trillion.
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