Are Apple Inc. (AAPL) and Others ‘Government Stooges’?

As for the other three companies, Apple Inc. (NASDAQ:AAPL), Microsoft, and Yahoo! Inc. (NASDAQ:YHOO) have free cash flow yields of 10.9%, 9.4%, and -2.9% respectively. Yahoo! has struggled to find free cash flow the past two years, probably in large part to Google Inc (NASDAQ:GOOG)’s dominance. Yahoo! does offer an impressive earnings yield of 12.9%, while Apple and Microsoft are at 9.7% and 5.5% respectively. Microsoft’s P/E is not exactly what investors are generally looking for (18.1), but Apple Inc. (NASDAQ:AAPL)’s is more respectable at 10.3. Yahoo! again wins this competition with a P/E of just 7.7.

Be at ease?

If investors are to fear anyone, I don’t think it should be these companies. It appears as if they are have made every attempt to not be a ‘government stooge.’ If people are going to fear, fear the ones pushing the law. If their only defense is, “It was legal,” should we be concerned about morals? That’s up to you.

The Foolish bottom line

It doesn’t appear that any of these companies willingly release our information for the sole purpose of entertainment. With their reputations at stake, these companies probably fear the government more than anything right now. They will likely take whatever steps necessary to ensure users that their privacy is not being infringed upon. These companies may actually benefit from the scandal, if they can prove their loyalty to the customers they serve.

Tyler Wofford has no position in any stocks mentioned. The Motley Fool recommends Apple and Facebook. The Motley Fool owns shares of Apple, Facebook, and Microsoft.

The article Are Apple and Others ‘Government Stooges’? originally appeared on Fool.com and is written by Tyler Wofford.

Tyler is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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