The net profit of the iPhone manufacturer for the three months to the end of March fell by more than two percent to $23.6 billion (CZK 549 billion), while sales themselves were four percent lower and reached $90.8 billion. Although this was the fifth decline in sales in a row, the figure was somewhat surprising, as analysts had expected even lower sales.
But the biggest news was that the company’s board approved a record share buyback plan. With the aforementioned value of $110 billion, Apple surpassed its own record from 2018, when it bought back shares worth $100 billion, Bloomberg reported.
“It’s a staggering number. Apple may be realizing that it is becoming a value stock that returns cash to shareholders, rather than a high-performing growth stock that needs cash for R&D or expansion,” Steve Sosnick, chief strategist at Interactive Brokers, told Bloomberg.
Share buybacks increase their value
Among other American companies, the oil company Chevron has the largest buyback of its shares in history, which bought back shares worth $75 billion last year.
By buying back shares, the company’s shareholders who have retained the shares increase their ownership stake. At the same time, it is one of the ways in which the company can dispose of excess free funds. At the same time, it stimulates the demand for the company’s shares, because as a result of the buyback, their availability is lower, which often leads to an increase in their value.
After the close of trading on the stock exchange on Thursday and the publication of economic results, including the announcement of a buyback, Apple shares rose by almost eight percent, later erasing part of the increase.
But Apple shares have lagged since the start of the year, falling 10 percent, while the main U.S. S&P 500 index gained more than six percent, Bloomberg added.
Apple is preparing its own smart ring
Hardware
Tags: staggering number Apple announced largest share buyback history
