Apple’s historic buybacks buoy stock amidst market slump

Apple buybacks exceed $550 billion over the past decade, far more than any other American company, and, amidst a broader market slump, these stock repurchases have buoyed Apple’s share price.

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Subrat Patnaik for Bloomberg News:

Even with the stock under pressure the past few days because of production delays for its newest handsets, Apple has fared better than other megacap tech companies in this year’s bear market. Solid earnings and generous buybacks have become a central part of the investment thesis, making the stock more attractive during turbulent times.

The next signpost for investors about Apple’s appetite for its own stock will come in April, which is when the company typically tops up its repurchase authorization. It’s added $90 billion to the program in each of the past two years. It’s still generating the earnings to replenish its bank account: It was the only megacap to rally in the wake of its results this quarter, and the report kept analysts from dramatically slashing estimates, in contrast to widespread cuts at its peers.

In two of the last five years, it has outspent the second-highest repurchaser by least $50 billion. It spent almost $90 billion last year, about equal to the market value of Citigroup Inc.

MacDailyNews Take: It’s simple supply and demand.

The great advantage of cash-rich, cash-generating Apple is that it’s a refuge from the vagaries of the market.MacDailyNews, March 7, 2022

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