An Apple Byte : Apple’s $110 Billion US Stock BuyBack Is Biggest Ever

8th May 2024

Apple Inc’s Board has just approved a $110 Billion Stock buyback which will be the biggest buyback in US history. Apple is already responsible for the top six of the 10 largest share-repurchase announcements ever made in the US, and this announcement beats its own previous record for the largest buyback value from 2018 when it authorised $100 billion in share repurchases.

Apple has seen a slowdown in sales in recent years but with its quarterly post-market results and sales exceeding expectations, its quarterly dividend increased (for the twelfth year in a row), and growth predicted, the buyback announcement added to the momentum as shares rose as much as 7.9 per cent in post-market trading.

It’s predicted that the move could add more than $190 billion in market value, thereby making investors see Apple’s as a value rather than a growth stock. Buybacks tend to happen when a company has significant cash reserves (as in the case of Apple) and are primarily aimed at returning value to a company’s shareholders.