After Disappointing First Quarter Results, Apple Inc (APPL) Buyback its Stock worth $14 billion
Results for first quarter for Apple Inc (NASDAQ:AAPL) were quite disappointing; however within the two weeks of revealing those results Apple Inc (NASDAQ:AAPL) so far has bought back its stock worth $14 billion, According to a Reuters report. Shares of $12 billion were bought through ASR or Accelerated Share Purchase, whereas the remaining shares worth $2 billion were purchased from the open stock market.
The Wall Street Journal interviewed Tim Cook, Apple CEO and was the first to report this news.
According to the Tim Cook, Apple Inc (NASDAQ:AAPL) did not see the 8% decline in company’s shares coming and was surprised by it; 8% decline that followed the quarterly results announcement happened on the 28th of January earlier this year.
iPhone sales for the company’s hoiday-period were less than what was expected and the revenue forecast that was issued by Apple Inc (NASDAQ:AAPL) was also not a strong one.
This latest buy-back of $14 billion now amounts to a total of over $40 billion stock buyback within the last 12 months; according to Cook this buyback is a world record for 12 months and show that the company believes in itself, which is evident from its actions.
This is buyback is part of Apple’s plan to repurchase its shares worth $60 billion.
Apple Inc (NASDAQ:AAPL) also returned a sum of $7.7 billion to its stakeholders via buybacks and dividends in its December quarter.
Tim Cook promised that an update on Apple’s buyback program will be made later this year in March or maybe April.
Shares of Apple Inc (NASDAQ:AAPL) kicked off the session at $521.38 and the stock’s range over 52 weeks was between $385.10 and $575.14.