Apple Inc. Buys In -- To Itself
Apple just put down $14 billion -- and it's betting on itself. In an interview with The Wall Street Journal, CEO Tim Cook said that he was surprised with the market's reaction to Apple's latest earnings report. In order to take advantage of the overreaction, Apple decided to conduct another accelerated share repurchase program. That means that Apple has repurchased approximately $42 billion of its stock thus far, out of its total $60 billion authorization.
That authorization was originally expected to last through the end of calendar 2015, but at this rate Apple will exhaust it in no time. It looks like the Mac maker might need to boost its authorization in the near future, and likely take out more debt in order to fund the repurchase program without tapping foreign reserves. Investors are quite pleased with the news, sending shares higher on Friday.
In this segment of Tech Teardown, Erin Kennedy discusses Apple's repurchase activity with Evan Niu, CFA, our tech and telecom bureau chief.
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The article Apple Inc. Buys In -- To Itself originally appeared on Fool.com.Erin Kennedy owns shares of Apple. Evan Niu, CFA owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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