Apple takes $14B stock bite
NEW YORK —
Apple has repurchased $14 billion of its stock in the two weeks after its first-quarter financial results and second-quarter revenue outlook disappointed investors.
The buyback news helped lift Apple’s stock by more than 1 percent Friday. Apple Inc. bought $12 billion worth of its shares through an accelerated repurchase program and $2 billion on the open market, the company confirmed.
Late Thursday, CEO Tim Cook said in an interview with The Wall Street Journal that the company was “surprised” when its stock dropped 8 percent the day after its earnings report and revenue outlook. He told the newspaper he wanted to be “aggressive” and “opportunistic.”
In the past year Apple’s shares have lost some ground due to concerns about slowing growth and increasing competition.
Apple’s stock may be hard pressed to return to its September 2012 peak of more than $700. But Apple isn’t sitting idle. Its stock buyback signals the company remains confident in its business.