Apple’s stock got some mojo after an analyst made suggestions about what to do with the company's $25 billion in cash.
The Cupertino, California, company’s shares rose $6.99, or 7 percent, to $106.99 in midday trading.
“We believe a share repurchase represents the best use of (at least part of) Apple’s ~$25 billion in cash,” Sanford Bernstein analyst Toni Sacconaghi wrote Wednesday in a report. “In our view, it would be more favorable to shareholders than the alternatives of either a major acquisition or a substantial dividend.”
Apple beat earnings estimates last week on strong sales of iPhones, Macs, and iPods. The company reported that it had amassed a cash position of $25 billion.
Bernstein Research makes a market in Apple securities.