•Apple (AAPL) just announced that it is buying back $110 billion of its common stock.
•To put this in perspective, the value of this buyback is greater than the market capitalisation of 419, or roughly 84%, of the S&P 500 companies.
•Notably, this buyback is larger than the market cap of Boeing, Starbucks, PayPal, Northrop Grumman, Ford, and eBay
•As investors, we love share buybacks as it increases our percentage stake in the company. It’s a great way to return capital to shareholders in a tax free way
BUT, it also shows that one the most innovative companies of the last decade(s) are running out of ideas.
Share buybacks may push the price over the short/midtem but over long-term those who finds way to invest and grow will win😉
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