Apple repurchases $14B of own stock over two weeks after 8% decline

Posted:
in AAPL Investors edited February 2014
Apple CEO Tim Cook revealed on Thursday that the company has bought back some $14 billion worth of AAPL shares since an earnings call two weeks ago, saying the move is the biggest repurchase on record for such a short period.

Apple


Speaking with The Wall Street Journal, Cook said he was "surprised" to see the 8 percent drop in share price immediately following the release of Apple's quarterly results and wanted to pounce on the opportunity.

In a move he called "aggressive" and "opportunistic," Cook authorized the $14 billion repurchase, which brings the grand total to $40 billion worth of shares in the past year. To put that in perspective, Apple spent $16 billion on buybacks over a full quarter in 2013.

"It means that we are betting on Apple. It means that we are really confident on what we are doing and what we plan to do," Cook said. "We're not just saying that. We're showing that with our actions."

Apple announced in April 2013 a $100 billion capital return program that includes $60 billion in share repurchases and an increased quarterly dividend of 15 percent. The plan is scheduled to run through 2015.

Cook also offered insight into Apple's financial plans, saying the company purchased 21 companies over the past 15 months, with none of the deals exceeding $1 billion.

"You want to be able to adjust for the long-term interest of the shareholders, not for the short-term shareholder, not for the day trader," Cook explained. "We may see a huge company tomorrow that we want to acquire or something may happen in the stock market that's unpredictable."

Google, on the other hand, continues its buying spree with high-profile deals including robotics contractor Boston Dynamics and smart home device firm Nest. In the case of Nest, Google spent $3.2 billion to bring the company cofounded by former Apple employees Tony Fadell and Matt Rogers into the fold.

While Apple has yet to spend nearly that amount on a single buy, Cook said such an acquisition is not out of the realm of possibility.

"We've looked at big companies. We don't have a predisposition not to buy big companies," Cook said. "The money is also not burning a hole in our pocket where we say, 'let's make a list of 10 and pick the best one.' We have no problem spending ten figures for the right company, for the right fit that's in the best interest of Apple in the long-term. None. Zero."
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Comments

  • Reply 1 of 72

    LOL

  • Reply 2 of 72
    crowleycrowley Posts: 5,826member
    Good
  • Reply 3 of 72
    OK - Here we go.

    This was a great move by Tim Cook - fantastic action, and positive statement to WS Journal.

    I am a HUGE Tim Cook supporter -only adjustment that I hope for in his actions was this - more positive verbal communications to the Press - and decisive action. This purchase was.

    I am sure that Carl is thrilled with this statement. What we need is aggressive follow-up - authorized another $50 Billion - and keep buying buying buying on all weakness under $600. Borrow at low rates and lets get this stock up to $600 and don't let it fall below that number.

    Mindset will then change with new product announcements and we will move where it should be which is in the $700-800 range.

    Ultimate good move would be to announce additional program at the meeting, and a great stock split saying that Apple is extremely confident with its growth and new product launches in the forthcoming calendar year. -- great for Apple recruitment of top engineers, and long term shareholders
  • Reply 4 of 72
    Originally Posted by slluffs View Post

    LOL

     

    I predict big things from you.

  • Reply 5 of 72
    red oakred oak Posts: 663member
    OMG - they just bought back over 27 million shares. Highly aggressive move

    Great to see Apple on the offensive
  • Reply 6 of 72
    jungmarkjungmark Posts: 6,687member
    Wow. Who knew Cook et al knew what they are doing? Oh yeah, intelligent people. See Carl, Apple doesn't need your help.
  • Reply 7 of 72
    Incredibly stupid graphic to go with this story. Surely you can be more newsworthy or less generic. Insulting to readers.
  • Reply 8 of 72
    chris_cachris_ca Posts: 2,543member
    [QUOTE]Apple CEO Tim Cook revealed on Thursday that the company has bought back some $14 billion worth of AAPL shares since an earnings call two weeks ago. [/QUOTE]
    And none of it was purchased from Carl...
  • Reply 9 of 72

    When you compare Apple's stock price to other tech/internet stocks it is hilarious how cheap it is. They generate a ton of cash flow/profits each quarter and are not even recognizing all their profits(they are deferring a portion of them).

     

    Truth is, they can buy back ALL their stock in a few years themselves if Wall Street doesn't want it...and Wall Street doesn't deserve it.

  • Reply 10 of 72

    You are right, Ub, Wall Street doesn't value these shares, now let them pay more for them - they don't deserve them

  • Reply 11 of 72

    Red flag ditz comment.

     

    You don't think that Carl suggesting buy backs has influenced Tim (who I support and Carl) starting to act pre shareholder meeting?

     

    Are you really that naive???????????????   You are joking aren't you??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

  • Reply 12 of 72
    Quote:
    Originally Posted by Chris_CA View Post





    And none of it was purchased from Carl...

     

    Great comment  - for the people that think Carl is requesting a personal check … these are buy-backs, people here would have thought this was a check to Carl if you did not note!

  • Reply 13 of 72
    jpmiajpmia Posts: 63member
    Fuc!,? yeah... thats how you do it...
  • Reply 14 of 72

    So Apple can time their stock repurchases? I thought they were either carried out on a known schedule or they were carried out by a disinterested third party without Apple's direction.

     

    Doesn't leaving the ability to repurchase shares when the stock is low (for whatever reason) create a conflict of interest? It would behoove the CEO or another highly placed person to undermine the stock in order to create an ideal buyback situation. Not saying that is what has happened (after all, if they were more focused on the opportunity, they should've bought back billions of their own stock when it sunk to the mid-$80 range at the beginning of the Depression/Recession...they could have essentially taken the company private at that point).

  • Reply 15 of 72
    tbelltbell Posts: 3,146member
    OK - Here we go.

    This was a great move by Tim Cook - fantastic action, and positive statement to WS Journal.

    I am a HUGE Tim Cook supporter -only adjustment that I hope for in his actions was this - more positive verbal communications to the Press - and decisive action. This purchase was.

    I am sure that Carl is thrilled with this statement. What we need is aggressive follow-up - authorized another $50 Billion - and keep buying buying buying on all weakness under $600. Borrow at low rates and lets get this stock up to $600 and don't let it fall below that number.

    Mindset will then change with new product announcements and we will move where it should be which is in the $700-800 range.

    Ultimate good move would be to announce additional program at the meeting, and a great stock split saying that Apple is extremely confident with its growth and new product launches in the forthcoming calendar year. -- great for Apple recruitment of top engineers, and long term shareholders

    You obviously missed Tim's message. Namely, he does not support Carl or other short term traders like him. He clearly is saying Apple took advantage of the drop under its current program. Ironically despite what some of the short term investors say, Apple's buy did very little for the stock price.

    Cook is also clearly saying Apple needs to hold on to cash for opportunities like buying companies, settling lawsuits, ect.

    I doubt Apple will do a split either. Higher priced stocks keep a lot of folks out and helps stability.
  • Reply 16 of 72
    hmmhmm Posts: 3,405member
    Quote:

    Originally Posted by SpamSandwich View Post


    they could have essentially taken the company private at that point).

    Via money from Jobs and other insiders?  It's not like a publicly traded company can buy itself.

  • Reply 17 of 72
    tbelltbell Posts: 3,146member
    Red flag ditz comment.

    You don't think that Carl suggesting buy backs has influenced Tim (who I support and Carl) starting to act pre shareholder meeting?

    Are you really that naive???????????????   You are joking aren't you??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

    I think the message was we already have a buy back program and that Carl can go suck it. That is what Netflix told Carl, and its stock has being doing quite well since Carl sold. Carl fans should go research how he made his fortune as a corporate raider. He destroyed TWA making himself rich and leaving stockholders with nothing.
  • Reply 18 of 72
    eric38eric38 Posts: 100member
    ub52209 wrote: »
    When you compare Apple's stock price to other tech/internet stocks it is hilarious how cheap it is. They generate a ton of cash flow/profits each quarter and are not even recognizing all their profits(they are deferring a portion of them).

    Truth is, they can buy back ALL their stock in a few years themselves if Wall Street doesn't want it...and Wall Street doesn't deserve it.
    ub52209 wrote: »
    When you compare Apple's stock price to other tech/internet stocks it is hilarious how cheap it is. They generate a ton of cash flow/profits each quarter and are not even recognizing all their profits(they are deferring a portion of them).

    Truth is, they can buy back ALL their stock in a few years themselves if Wall Street doesn't want it...and Wall Street doesn't deserve it.

    Very true. Within 6-8 years, they could buy back a large%. They need to get rid of their dividend, let the stock sink into the low $400,s, issue bonds to buy back $200 billion in shares at $400. Their dividend has been a complete failure on creating enthusiasm for their shares. If Apple believes they are undervalued, use Cash to buy your shares, not to issue a paltry dividend.
  • Reply 19 of 72
    bobschlobbobschlob Posts: 1,074member
    Quote:

    Originally Posted by SpamSandwich View Post

     

    So Apple can time their stock repurchases? I thought they were either carried out on a known schedule or they were carried out by a disinterested third party without Apple's direction.

     

    Doesn't leaving the ability to repurchase shares when the stock is low (for whatever reason) create a conflict of interest? It would behoove the CEO or another highly placed person to undermine the stock in order to create an ideal buyback situation. Not saying that is what has happened (after all, if they were more focused on the opportunity, they should've bought back billions of their own stock when it sunk to the mid-$80 range at the beginning of the Depression/Recession...they could have essentially taken the company private at that point).


    It's a good question.

    My first thought was: "Wow, now the MMs will have real cause to tank the stock; because then TC will (clearly) buy more if they do. (?)

  • Reply 20 of 72
    foadfoad Posts: 697member
    Quote:

    Originally Posted by SpamSandwich View Post

     

    So Apple can time their stock repurchases? I thought they were either carried out on a known schedule or they were carried out by a disinterested third party without Apple's direction.

     

    Doesn't leaving the ability to repurchase shares when the stock is low (for whatever reason) create a conflict of interest? It would behoove the CEO or another highly placed person to undermine the stock in order to create an ideal buyback situation. Not saying that is what has happened (after all, if they were more focused on the opportunity, they should've bought back billions of their own stock when it sunk to the mid-$80 range at the beginning of the Depression/Recession...they could have essentially taken the company private at that point).


     

    I would think that if Apple provided false information that tanked the stock and then bought, I think that would be illegal. If the market reacts negatively of its own free will and Apple takes advantage of it, then I don't see where the conflict would be. I could be completely wrong though.

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