With the news, the iPhone maker breaks its own record for the highest repurchase value announced in the United States. According to market research company Birinyi Associates, the tech giant authorised $100 billion in share repurchases in 2018, dating back to 1999.
“An astonishing number,” said Steve Sosnick, chief strategist at Interactive Brokers LLC. “Apple may be acknowledging that they are becoming a value stock that returns money to shareholders rather than a high powered growth stock that needs its cash for R&D or expansion.”
Overall, Apple is responsible for six of the top ten biggest share repurchase announcements ever made in the United States. The list also contains Chevron Corp. and Alphabet Inc.
Apple also disclosed quarterly earnings after the market closed on Thursday, exceeding investor forecasts. The firm reported sales that exceeded expectations and expected a return to revenue growth in the current term. Apple also increased its quarterly payout for the 12th year in a row. That raised expectations that the company’s slump is lessening.
The gains are a welcome reversal for Apple investors, as the technology behemoth had trailed its Magnificent 7 counterparts this year until Thursday’s closing. Apple’s stock is down 10%, while the S&P 500 Index is up more than 6%.