Results 1 to 4 of 4

Your favorite Apple, iPhone, iPad, iOS, Jailbreak, and Cydia site.


Thread: Apple's Share Buy Back Pushing AAPL Higher

  1. #1
    What's Jailbreak? Michael Essany's Avatar
    Join Date
    Aug 2009
    Location
    Valparaiso, Indiana
    Posts
    4,376
    Thanks
    17
    Thanked 1,491 Times in 577 Posts

    Default Apple's Share Buy Back Pushing AAPL Higher


    This week, when Apple reported strong quarterly earnings and iPhone sales that blew analyst projections out of the water, the company also revealed a healthy investment in itself.

    All told, Apple spent approximately $18 billion to purchase nearly 32 millions shares of AAPL during the March quarter. This move is just one of a multitude of factors pushing shares of AAPL higher over the last 48 hours.

    On Wednesday, Apple announced a seven-for-one stock split and also confirmed a new threshold for share buybacks, which are now capped at $90 billion. "As part of the program," Apple explained in its report summary, "the Board has increased its share repurchase authorization to $90 billion from the $60 billion level announced last year. The Company expects to continue to utilize about $1 billion annually to net-share-settle vesting restricted stock units."

    Billionaire philanthropist and heavyweight Apple shareholder Carl Icahn was among the happiest of campers in response to the news. "Agree completely with $AAPL's increased buyback and extremely pleased with results. Believe we'll also be happy when we see new products," Icahn tweeted.

    Source: CNN

  2. #2
    Livin the iPhone Life bigboyz's Avatar
    Join Date
    Feb 2009
    Location
    North East Coast
    Posts
    2,095
    Thanks
    19
    Thanked 430 Times in 265 Posts

    Was that not the point?

  3. #3
    iPhone? More like MyPhone HovikGas's Avatar
    Join Date
    Mar 2008
    Location
    Los Angeles, CA
    Posts
    258
    Thanks
    317
    Thanked 33 Times in 28 Posts

    So basically everyone who owned Apple stock increased their shares sevenfold?!

  4. #4
    Come June 2, 2014, yes; however, when a stock splits, so does the price. So, let's say you had 10 shares of Apple stock worth $570 dollars per share for a total of $5700, come June 2, you would now have 70 shares, but the value would remain the same; the value-per-share will decrease seven-fold.

    The benefit of this is it makes the stock more accessible from a financial standpoint to common-folks like you and I who may not have thousands of dollars to invest all at once. Furthermore, increased buying of shares will increase the value of the stock, and drive prices upward again. Stock splits encourage this.

    It's uncommon to see a 7-for-1 stock split; usually it's a 2-for-1 or 3-for-1 split, but this move shows just how confident Cook and Co. are about the future of the company.
    Last edited by pulsecub; 2014-04-27 at 12:50 PM.

Posting Permissions
  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •