Apple Inc. spent more than $550 billion on share buybacks over the past decade, more than any other US company, and the tech giant shows no signs of slowing down.
Apple has fared better than other mega-cap tech companies in this year’s bear market, though shares have tumbled in recent days on recent production delays. phones took over. Solid earnings and generous share buybacks have become central to investment themes, making equities more attractive in turbulent times.
Gene Munster, who covered Apple for 21 years as an analyst before co-founding venture capital firm Loop Ventures, said it was “a safe haven for investors and provides insight into the gold standard”. he said. “If they keep showing up making money like they’re making it and continuing to buy back shares, that sends a strong message, and I think they’ll be doing that as often as possible.”
in the next guide for investors about Apple’s stock ambitions usually comes out in April when the company rises up its share repurchase approvals. Over the past two years, $90 billion has been added to the program each year.
It still generates income to fund bank accounts. The only megacap to rebound after this quarter’s results, the report prevented analysts from sharply lowering estimates in contrast to broad cuts from its peers.
Demand for Apple’s most expensive iPhone remains strong, analysts say, even as the global economy slows. The current problem is production delays due to the COVID-19 lockdowns in China, which analysts say are causing record wait times for deliveries at the start of the holiday shopping season. While this could affect sales in the short term, there is no indication that it will affect the stock price in the longer term.
Apple has been hoarding cash for years under co-founder Steve Jobs, and CEO Tim Cook has been working on ways to better invest that cash and give it back to shareholders. As of the last quarter, he held $169 billion in cash and bonds, and Apple intends to have zero liquid liquidity going forward.