Apple has announced a record $110 billion share buyback plan, accompanied by strong quarterly earnings and an increase in dividends.
Apple announced that it has secured the largest share repurchase plan in U.S. history. The company's board has approved an additional $110 billion in share buybacks, surpassing the tech giant's previous record of $100 billion set in 2018. This strategic decision positions Apple at the forefront of the U.S. market for share repurchase announcements, responsible for six of the top ten buyback plans ever initiated in the country.
Chief Strategist Steve Sosnick from Interactive Brokers LLC referred to the buyback as "an astonishing number," suggesting that Apple might be transitioning from a high-growth entity to a value stock focusing on shareholder returns. Sosnick pointed to the possibility that Apple may be allocating less capital toward research and development or expansion.
The announcement came in conjunction with Apple's quarterly earnings report, which outperformed investor expectations. The company reported higher-than-anticipated sales and projected a return to revenue growth in the upcoming quarter. Additionally, Apple increased its quarterly dividend for the twelfth consecutive year.
Following the release of these financial results, Apple's stock experienced a significant surge, climbing as much as 7.9% in after-hours trading. Should this upward trend continue into the next trading session, Apple could potentially see an increase in market value exceeding $190 billion.
