Apple extends share buybacks by another $90 billion

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in AAPL Investors edited May 2023
One year after introducing a $90 billion stock buyback program, Apple has launched another to recover an extra $90 billion of common stock.

Apple logo on a building
Apple logo on a building


Announced as part of Apple's financial results for the second quarter of 2023, Apple is preparing to perform more buybacks of its shares. In a new program, the board of directors has authorized the repurchase of up to $90 billion of Apple's common stock.

The announcement is a repeat of an announcement made for Q2 2022, when Apple initiated a program to recover $90 billion in stock. The new program is in addition to the previous share buyback initiative.

"Given our confidence in Apple's future and the value we see in our stock, our Board has authorized an additional $90 billion for share repurchases," said CFO Luca Maestri.

Occurring regularly since 2012, Apple has habitually launched programs for share repurchases. Since 2012 until the end of 2022, Apple spent in excess of $572 billion on share buyback programs.

Share buyback programs are often performed to reduce the number of outstanding shares in a company. Increased scarcity typically results in an increase in the stock's price, or supporting a desired target.

Read on AppleInsider

Comments

  • Reply 1 of 17
    MacPromacpro Posts: 19,873member
    Waren and me are pleased :)
    radarthekatjib
     2Likes 0Dislikes 0Informatives
  • Reply 2 of 17
    mrshowmrshow Posts: 164member
    This is disgusting. Stock buybacks should be illegal again. 
    tape
     1Like 0Dislikes 0Informatives
  • Reply 3 of 17
    delreyjonesdelreyjones Posts: 337member
    mrshow said:
    This is disgusting. Stock buybacks should be illegal again. 
    Why?  I’m free to buy Apple stock.  You’re free to buy Apple stock.  Why shouldn’t Apple be free to buy Apple stock?
    mike1byronlMacPro
     3Likes 0Dislikes 0Informatives
  • Reply 4 of 17
    22july201322july2013 Posts: 3,814member
    MacPro said:
    Waren and me are pleased :)
    Why would a city in Germany be pleased?
     0Likes 0Dislikes 0Informatives
  • Reply 5 of 17
    22july201322july2013 Posts: 3,814member
    mrshow said:
    This is disgusting. Stock buybacks should be illegal again. 
    Why?  I’m free to buy Apple stock.  You’re free to buy Apple stock.  Why shouldn’t Apple be free to buy Apple stock?
    Despite trying, I cannot conceive of any logical or illogical explanation to rationalize his statement, so he must be trolling.

    Even without publicly traded shares, shares in companies still exist, but they are privately traded. His statement suggests that he opposes the public stock trading system.
    byronlMacPro
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  • Reply 6 of 17
    radarthekatradarthekat Posts: 3,939moderator
    mrshow said:
    This is disgusting. Stock buybacks should be illegal again. 
    Stock buybacks are a tax efficient means of moving cash off the balance sheet.  You don’t want a lot of cash sitting unused on a company’s balance sheet because cash gets valued at 1x versus a company’s operations being value at some higher multiple, in Apple’s case currently at about 28x.   

    This makes the shares more attractive to those looking to invest.  Each dollar invested buys more of the productive assets and less of the static cash asset.  

    And, of course, share buybacks increase the existing shareholders’ percentage ownership.  I’ll trade my ownership stake in a pile of 1x-valued static cash any day for more of Apple’s 28x-valued productive operations.  Thank you, sir.  Please don’t make that illegal.  
    edited May 2023
    byronlMacProjony0
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  • Reply 7 of 17
    red oakred oak Posts: 1,116member
    It is all about return to shareholders, the owners of the company 

    Apple is not buying stock for itself.  It is doing it on behalf of those of us who own Apple, increasing our percentage ownership


    MacProkingofsomewherehot
     2Likes 0Dislikes 0Informatives
  • Reply 8 of 17
    Madbummadbum Posts: 536member
    mrshow said:
    This is disgusting. Stock buybacks should be illegal again. 
    Why? Are you a communist?
     0Likes 0Dislikes 0Informatives
  • Reply 9 of 17
    chutzpahchutzpah Posts: 392member
    mrshow said:
    This is disgusting. Stock buybacks should be illegal again. 
    When were they ever illegal?
    byronlkingofsomewherehot
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  • Reply 10 of 17
    aderutteraderutter Posts: 637member
    He probably thinks it would be better to increase the dividend. 
     0Likes 0Dislikes 0Informatives
  • Reply 11 of 17
    YP101yp101 Posts: 183member
    aderutter said:
    He probably thinks it would be better to increase the dividend. 
    Apple increased dividend 4% to $0.24 per share this quarter.
    byronlMacPro
     2Likes 0Dislikes 0Informatives
  • Reply 12 of 17
    drdaviddrdavid Posts: 90member
    chutzpah said:
    mrshow said:
    This is disgusting. Stock buybacks should be illegal again. 
    When were they ever illegal?
    Before 1982. 
    foregoneconclusiontapechutzpah
     2Likes 0Dislikes 1Informative
  • Reply 13 of 17
    See link below...there are plenty of legitimate reasons for making stock buybacks illegal AGAIN. Basically, a lot of these companies rationale for buybacks is "what else can we use our giant stockpile of cash for" while also constantly moaning/groaning about corporate tax rates that are already at rock bottom. 

    https://www.yahoo.com/video/7-reasons-stock-buybacks-illegal-172253787.html
    drdavidmuthuk_vanalingamtape
     3Likes 0Dislikes 0Informatives
  • Reply 14 of 17
    MacPromacpro Posts: 19,873member
    MacPro said:
    Waren and me are pleased :)
    Why would a city in Germany be pleased?
    I had Bard write that for me.
     0Likes 0Dislikes 0Informatives
  • Reply 15 of 17
    tmaytmay Posts: 6,467member
    See link below...there are plenty of legitimate reasons for making stock buybacks illegal AGAIN. Basically, a lot of these companies rationale for buybacks is "what else can we use our giant stockpile of cash for" while also constantly moaning/groaning about corporate tax rates that are already at rock bottom. 

    https://www.yahoo.com/video/7-reasons-stock-buybacks-illegal-172253787.html
    "a lot of these companies"

    That's the problem with making buybacks illegal; there are "Black Swans" like Apple that generate excess cash of sufficient magnitude that it can't be consumed for organic growth, relevant acquisitions, nor productively invested elsewhere.
     0Likes 0Dislikes 0Informatives
  • Reply 16 of 17
    Madbum said:
    mrshow said:
    This is disgusting. Stock buybacks should be illegal again. 
    Why? Are you a communist?
    Errr.... you have no clue what communism is, do you?
    edited May 2023
    muthuk_vanalingamchutzpah
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  • Reply 17 of 17
    lorq210lorq210 Posts: 2member
    It pleases me that Apple increased its dividend by 4%...
     0Likes 0Dislikes 0Informatives
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