Business Maverick

Business Maverick

Apple’s $110bn stock buyback plan is largest in US history

Apple’s $110bn stock buyback plan is largest in US history
Apple CEO Tim Cook delivers remarks during an Apple special event on 12 September 2023 in Cupertino, California. (Photo by Justin Sullivan/Getty Images)

In a move fitting for one of the largest companies in the world, Apple just announced the biggest US buyback ever, saying its board approved an additional $110-billion in share repurchases. 

With the announcement, the maker of iPhones tops its own record for largest buyback value announced in the US. In 2018, the tech giant authorised $100-billion in share repurchases, according to data compiled by market research firm Birinyi Associates that goes back to 1999.

“An astonishing number,” said Steve Sosnick, chief strategist at Interactive Brokers LLC. “Apple may be acknowledging 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.”

All told, Apple is responsible for the top six of the 10 largest share-repurchase announcements ever made in the US. The list also includes Chevron and Alphabet.  

Apple also reported quarterly results post-market on Thursday that exceeded investor expectations. The company posted sales that were better than estimates and predicted that it would return to revenue growth in the current period. Apple also raised its quarterly dividend for the twelfth year in a row. That stoked hopes that the slowdown that’s hit the company is easing. 

Read: Apple Rallies After Company Forecasts Return to Sales Growth (2)

Shares rose 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. 

The gains are a welcome reversal for Apple investors as the technology giant has lagged its Magnificent 7 peers this year through Thursday’s close. Apple shares are down 10%, while the S&P 500 Index is up more than 6%.

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  • Rae Earl says:

    One could say that running a country is akin to running a big business. Problem is politicians think they know how to run a business. They don’t. So why does the ANC interfere in every one of our SOE’s. They may be quasi owners but they have no clue and have screwed every one of these state owned businesses up. Imagine if they were run by Apple or Amazon. SA would be super wealthy and prosperous and everyone would have a job. Hope the new May 29th government gets the message. Business acumen is needed to run SOE’s, not politician’s puffed up with self importance and a complete absence of capability, hard work, and ignorance.

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