Forget About Share Buybacks and Dividends: Here Is How Apple Can Win Growth Investors Back

Core Insights - Investors are seeking growth opportunities from Apple beyond traditional methods like share buybacks and dividends, as the company has struggled to generate excitement in recent years [1][2][6] - Apple's recent ventures into AI have not captivated investors, with its partnership with OpenAI being seen as insufficient to drive significant upgrades or interest [8][9][10] Financial Strategies - Apple has consistently rewarded shareholders through dividends and stock buybacks over the past decade, but these strategies are becoming less appealing in the current market environment [4][6] - Notably, even major investors like Warren Buffett have reduced their stakes in Apple, indicating a need for the company to provide more compelling reasons for investors to remain engaged [6] AI Investment Opportunities - Analysts suggest that Apple should consider acquiring Perplexity, a large language model, to enhance its AI capabilities, with an estimated acquisition cost of around $30 billion [12] - Integrating Perplexity could improve Siri's functionality and enhance search capabilities in Safari, positioning Apple to compete more effectively with Microsoft and Google [13] Future Directions - Beyond Perplexity, Apple could explore acquiring Safe Superintelligence, which is still in the R&D phase, although monetization may take years [14] - Another potential area for exploration is AI-powered robotics, with Figure AI being a notable startup, though this may not directly align with Apple's existing product ecosystem [15][16]