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The fact that AAPL goes on regular stock buy back sprees with its warchest instead of risking innovation helps with the stability of what should be a declining
by roboys 7y ago
The fact that AAPL goes on regular stock buy back sprees with its warchest instead of risking innovation helps with the stability of what should be a declining stock price.
- mruts 7y agoWhy should the stock price be declining? Also companies do buybacks when the stock is cheap, not exepensive.
- mensetmanusman 7y agohttps://www.theatlantic.com/magazine/archive/2019/08/the-stock-buyback-swindle/592774/ https://www.theatlantic.com/magazine/archive/2019/08/the-sto... You would think that, but they actually purchase when it’s expensive :)
- Tepix 7y agoStock price is usually very dependent on future outlook. If there is no growth expected in the future, the stock price will usually be hurting.
- ajross 7y agoA stock buy-back increases the stock price, by definition (by creating demand for it where there was none). Absent buy-backs, the stock price would be lower. That statement doesn't require a "should".
- mruts 7y agoOf course, but that doesn’t mean Apple’s stock would be declining without the buybacks.
- electriclove 7y agoThe size of these buybacks is quite incredible as they have reduced the Number of Outstanding Shares by 50% in the last 7 years. https://www.macrotrends.net/stocks/charts/AAPL/apple/shares-outstanding https://www.macrotrends.net/stocks/charts/AAPL/apple/shares-... I agree that this is stabilizing the stock price. I also think that they are still spending plenty of money on innovation, it's just that they have too much money to know how to spend it appropriately. The stock is an incredible value (even still) because share repurchases and dividends continue to occur and they continue to make tons of money. And it will benefit from upside when they have another hit. Yes, I am long.
- electriclove 7y agoCorrection: reduced by 33%