Apple wants to buy its own shares for a whopping $110 billion. The sum is so huge that, purely mathematically, entire DAX companies can be had in the package for this money.
Apple earns so well that the company buys its own shares for a gigantic sum. The company plans to spend a whopping $110 billion on this. A huge cash reserve has been piling up recently – in the last quarter alone, the bottom line profit was $23.6 billion.
So Apple distributes part of it to shareholders and increases the dividend. Shareholders also benefit from the buyback program, as lower supply coupled with higher demand drives up the price of the shares. After the announcement, the share price shot up by around seven percent. Apple is valued at around $2.7 trillion on the stock market.
To put it into perspective: the share buyback program is the largest in US history. Apple is breaking its own record. In 2018, the company spent $100 billion on such a step. Places three to six in the largest share buyback programs also go to Apple.
110 billion dollars exceeds the market value of almost all of the 40 DAX companies. Only SAP, Siemens, Airbus and just Allianz have a higher market capitalization. .In purely mathematical terms, Apple could use the money to buy Mercedes Benz together with Rheinmetall. For BASF with the reinsurer Munich Re, it is easily enough. A third possibility: a package consisting of Adidas, Infineon and Commerzbank.
In the last quarter, Apple achieved sales of almost 91 billion dollars. “For many investors, Apple has emancipated itself from a pure tech stock to a value investment,” says Daniel Saurenz from Feingold Research ntv.de. “So big growth is no longer expected, but rather predictable and very solid profits. Of course, investors are also grateful for the very generous share buyback program.”