Alphabet recorded quite an achievement in the second quarter: surpassing Apple and becoming the company with the most cash. According to the Financial Times, the parent company of Google has $ 117 billion in reserves, while Apple has $ 102 billion.
The value indicates Alphabet’s great performance, but it can cause problems. As the FT, shareholders can pressure the company to have access to part of the cash on hand through the repurchase of shares or by dividends.
The information that there is a lot of cash on hand can lead to greater rigidity of regulators. In recent years, Google has received several fines in the European Union for violations of antitrust laws. The company is also being investigated in the United States.
Since 2017, the owner of Google has increased its reserve by $ 20 billion. According to the Financial Times, the value has increased because share buybacks have been small. In the past four years, the company has spent, on average, $ 1.7 billion per quarter on this type of transaction.
In the same interval, Apple withdrew $ 61 billion from its cash. The company took advantage of US government tax reforms that allowed it to repatriate reserves that were abroad, which led to more payments to its investors.