In a move that solidifies its position as one of the world’s largest and most successful companies, Apple Inc. has announced a record-breaking share buyback program, authorizing an additional $110 billion in share repurchases.
This historic move surpasses the company’s previous record of $100 billion in share repurchases, set in 2018, and cements Apple’s position as a leader in returning value to its shareholders.
According to data compiled by market research firm Birinyi Associates, Apple is responsible for six of the ten largest share-repurchase announcements ever made in the US, with other companies on the list including Chevron Corp. and Alphabet Inc.
This latest move demonstrates Apple’s commitment to sharing its success with its investors and is a testament to its enduring strength and profitability.
Apple house
The announcement was made alongside Apple’s quarterly results, which exceeded investor expectations and showed that the company is continuing to thrive despite challenges in the tech industry.
Apple’s sales were better than estimated, and the company predicted that it would return to revenue growth in the current period. Additionally, Apple raised its quarterly dividend for the twelfth year in a row, providing a welcome boost to its shareholders.
The news sent Apple’s shares soaring, with a gain of as much as 7.9% in post-market trading. If the gains hold on Friday, the move would add more than $190 billion in market value, an increase that would be a welcome reversal for Apple investors.
Despite being one of the world’s most valuable companies, Apple’s shares have lagged behind its peers in the so-called “Magnificent 7” group of tech stocks, with a decline of 10% so far this year. However, with this latest announcement, Apple is poised to regain its momentum and continue its long history of success.
Inside Apple (Credits: Wall Street Journal)
The move is also seen as a sign of Apple’s evolution from a high-growth company to a value stock that returns money to shareholders. Steve Sosnick, chief strategist at Interactive Brokers LLC, said, “An astonishing number…
Apple may acknowledge that they are becoming a value stock that returns money to shareholders rather than a high-powered growth stock that needs its cash for R&D or expansion.” This shift in strategy could be a huge turning point for Apple, as it looks to reward its loyal shareholders and cement its position as one of the world’s most successful and enduring companies.
