Apple Inc.: Don’t Let Politics Sway Your Decision to Buy (Or Sell) AAPL

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Apple Inc. (AAPL) CEO Tim Cook may be no fan of Republican presidential hopeful Donald Trump, but he has not altogether cut ties with the GOP. He has simply reeled in the company’s usual support of the party’s convention this year, where the party will presumably name Trump as the official Republican candidate.

Apple Inc.: Don't Let Politics Sway Your Decision to Buy (Or Sell) AAPL

As a sign of Cook’s aim to maintain good relations with the GOP, he’s hosting a fundraiser for House Speaker Paul Ryan. The June 28 breakfast will not only provide financial support for Ryan, but also other Republican representatives.

Just for the record, it’s not as if Apple hasn’t also supported Democrats in the past, and won’t again in the future. It’s noteworthy, though, that Cook and Apple have yet to serve up any meaningful support for either Democratic presidential candidate or the party itself this year.

A message to the party after neither Bernie Sanders nor Hillary Clinton chose to pick a side in February when the FBI and Apple were in an argument over smartphone privacy concerns?

Could be. Or, maybe it has got more to do with the fact that Cook still sees the modern Democratic party as anti-free-enterprise. Either way, things are getting real interesting with the usually liberal CEO.

Trump vs. Cook

In the grand scheme of things, it can’t come entirely as a surprise. Trump and Cook have squared off before, albeit indirectly … over the internet.

Case in point: In February, when the FBI asked Apple to unlock the digitally secure iPhone of San Bernardino shooter Syed Rizwan Farook and AAPL politely refused (citing right-to-privacy concerns), Trump called for an outright boycott of the company.

It’s hardly the only difference of opinion between Trump and Cook, however. Cook has taken issue with many of Trump’s comments regarding women, Muslims and minority groups. These are the keys to Apple’s decision to not support this year’s GOP, in fact.

More About Wooing, Less About Issues

As admirable as the notion of standing up for your ideals may be, make no mistake … the message Cook is aiming to send is more about winning and keeping the right friends in the right places, choosing the more popular side of political and social divides that ultimately win the company the most business possible.

As The Washington Post‘s Jonathan Capeheart explained it a little over a year ago:

“… Cook is an American, which gives him the right to lecture lawmakers in Indiana (two stores) and Arkansas (one store) about their wrong-headed and “very dangerous” policies. As an American business leader, he has an outsized authority that commands the attention of elected officials at all levels of government. I applaud his willingness to use his voice and stature to affect change here at home.

In a perfect world, Cook (and Sorenson and McMillon) would be as publicly vocal abroad as they have been at home. Yet, you would be a fool to expect them to shake their fists with equal vigor in less tolerant countries – unless your goal is to get them fired. The Almighty Dollar reigns supreme in the publicly traded companies they run. Their first responsibility is to shareholders who want growth in markets, dividends and profits. Their American outspokenness could result in much more than eyerolls if exercised in another country.”

In that vein, Paul Ryan may be a Republican, but the young politician is mostly a safe, clean, middle-ground affiliate that largely avoids damaging controversy and therefore doesn’t inspire ideas like boycotts or legislation that targets certain companies.

It’s work that Cook’s predecessor Steve Jobs rarely cared to fool with. Then again, before Tim Cook became CEO, many of the privacy and minority rights that have divided the country weren’t making headlines.

To that end, it should be made clear that the fundraiser being hosted by Tim Cook is Tim Cook’s personal decision, and not necessarily a message being delivered by Apple itself. Apple remains largely politically agnostic, without a dedicated team to handle such matters.

Then again, when the company and CEO in question are as high-profile as Apple and Tim Cook, respectively, there’s no distinct line between the two.

Bottom Line for AAPL

As for the impact all of this may have on the near-term or long-term value of AAPL stock, the reality is it probably won’t matter much either way.

Yes, Apple has found itself in the middle of more than one political and social debate, here and abroad. Its CEO’s stances on domestic gay rights and privacy rights, for instance, have both drawn boycott efforts.

Both ultimately failed though, because in the end, most consumers realize it’s just a phone, or a tablet, or a means of audio/video entertainment. Most consumers are pragmatic enough to realize a boycott effort would also do little besides annoy the boycotter.

In other words, the decision to support Paul Ryan but not support Donald Trump in 2016 will mostly be forgotten (and irrelevant) a year from now. And, that’s probably the way it should be.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/06/apple-inc-paul-ryan-buy-sell-aapl/.

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