2024-05-07 16:58:13 ET
Summary
- Apple announced a $110 billion stock buyback on Thursday, boosting its stock by 6% on Friday. This was the biggest stock repurchase announcement in U.S. history.
- The repurchase plan should improve EPS slightly but will do nothing for free cash flow and there are potentially effective uses for the company's cash.
- The article below suggests three alternative uses for Apple's massive largess and notes that this massive buyback authorization is unlikely to move the needle on the stock longer term.
Apple ( AAPL ) announced a $110 billion stock buyback after the bell on Thursday along with its Q1 results. This is the biggest stock repurchase program in history and helped the stock gain some six percent in trading on Friday. While the repurchase plan should buoy EPS on the margin, it is probably not the wisest way to utilize that massive amount of cash. We will also get into why this historic buyback program is unlikely to move the needle over the long-term for Apple shareholders. However, first here are three more effective uses for that largess in my opinion....
Read the full article on Seeking Alpha
For further details see:
Apple: Even A 'Historic' Buyback Program Isn't Going To Move The Needle