Apple has announced a record-breaking $110 billion, or approximately 102 billion euros, share buyback program, causing a significant increase in their share price on the secondary market. Despite a decrease in quarterly revenue compared to the previous year, Apple’s earnings per share exceeded analyst forecasts. This shift towards a value company that prioritizes shareholder returns over growth initiatives may be behind the move.
The technology giant surpasses its previous record of the largest share buyback program by a listed company in the United States with this new buyback program. The company had previously announced a $100 billion buyback program in 2018, solidifying its position as a leader in returning money to shareholders.
Analysts and experts speculate that this move could signal renewed investor confidence in the company’s future performance. Share buybacks typically increase the value of remaining shares, benefitting shareholders and increasing the company’s overall value.
Following the announcement, Apple’s stock rose by up to 7.9% in aftermarket trading. If this trend continues, Apple’s market value could increase by over $190 billion. The news of Apple’s return to growth and the record-breaking share buyback program has positioned the tech giant favorably in the market despite recent declines earlier in the year.