Apple stock may have taken a hit from recent volatility and general market uncertainty, but the company is not slowing down its business growth. It was announced this week that the tech giant will invest more than $1 billion in Austin Texas, and new data reveals that The company announced more permanent jobs than any other company this year.
While much of the spotlight has been on Amazon’s expansion in recent weeks, It could be the better company to watch for any investor that is seeking long-term returns.
Apple Will Spend $1 Billion on an Austin Campus
Apple said this week that it is increasing its Austin presence with a new campus. The company already employs 6,200 workers in Texas, with its current Austin office being the biggest outside of its HQ in California.
The new campus will be right next to existing facilities and will cover up to 133 acres of real estate. It will become the city’s largest employer, initially adding 5,000 employees with plans to add 10,000 more within five years.
Austin isn’t the only city where Apple will expand. There are new offices in the pipeline for Culver City, San Diego, and Seattle. In total, it will create 20,000 jobs by 2023.
Tax Laws Made Expansion Possible
Congress passed President Trump’s Tax Cuts and Jobs Act in 2017, leading to a flat 21% corporate tax rate. The effects of the cut are now being felt with companies like Apple and Amazon more willing to invest in a local workforce. The latest rules also mean that American companies can be taxed on their overseas profit holdings, so businesses have more incentive to keep their activities largely within the U.S.
In addition to $1 billion for its Austin expansion, Apple is expected to invest $30 billion in corporate expansion (including wages and facilities) over the next years.
Apple One of the Largest Employers and Growing
Apple employs 90,000 people domestically and has already created 6,000 jobs for 2018. it sees its corporate future being largely based in the U.S., even if its phones and other devices have strong and sometimes dominating market presences in overseas territories.
The tech sector is currently cooling, and this has led to a -1.74% decrease in Apple stock value over the last 12 months. While it may no longer be on top of the market, it remains a strong investment for the long term, and its continued focus on America could make stock an easier decision for investors who want to focus on the domestic economy.
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