Apple has announced a new record-breaking share buyback program worth $110 billion, or approximately 102 billion euros. The company surpassed its previous record of the largest share buyback program by a listed company in the United States with this move.
Analysts and experts believe that Apple’s shift towards a value company that prioritizes shareholder returns over growth initiatives like research and development may be driving this move. Share buybacks typically increase the value of remaining shares, benefitting shareholders and increasing the company’s overall value.
Despite a decrease in quarterly revenue compared to the previous year, Apple’s earnings per share exceeded analyst forecasts. The company remains optimistic about future growth prospects and raised its quarterly dividend for the twelfth consecutive year.
Following the announcement, Apple’s stock rose by up to 7.9% in aftermarket trading, signaling renewed investor confidence in the company’s future performance. If this trend continues, Apple’s market value could increase by over $190 billion.
Overall, the news of Apple’s return to growth and the record-breaking share buyback program have positioned the tech giant favorably in the market, despite a recent decline in share price earlier in the year. Analysts and investors are closely watching Apple’s performance, anticipating further positive developments from the company.