Following 8 Percent Decline In Price, Apple Bought Back $14 Billion Of Its Own Stock
Chief executive officer Tim Cook has confirmed that in the last two weeks, Apple has bought back a huge $14 billion worth of its own stock following its eight percent decline.
Cook said he was “surprised” that the price of Apple shares dropped after its quarterly financial results conference call on Jan. 27, and as such the Cupertino, Calif. company took advantage of the opportunity to pick up a chunk of its own stock at a lower price.
In a recent article published by The Wall Street Journal, Cook said:
It means that we are betting on Apple. It means that we are really confident on what we are doing and what we plan to do. We’re not just saying that. We’re showing that with our actions.
Cook also shared some information concerning Apple’s recent acquisitions: over the past 15 months, it's acquired a total of 21 different companies, the CEO explained, with no single purchase exceeding $1 billion. Indeed, Apple’s recent $14 billion stock repurchase is comparably huge – the company spent just $16 billion during one whole quarter last year.
He continued: “You want to be able to adjust for the long-term interest of the shareholders, not for the short-term shareholder, not for the day trader. We may see a huge company tomorrow that we want to acquire or something may happen in the stock market that’s unpredictable.”
Following high profile, high cost acquisitions being made from rival companies – including Google – Cook also added that such a move isn’t something Apple is considering:
We’ve looked at big companies. We don’t have a predisposition not to buy big companies. The money is also not burning a hole in our pocket where we say, ‘let’s make a list of 10 and pick the best one.’ We have no problem spending ten figures for the right company, for the right fit that’s in the best interest of Apple in the long-term. None. Zero.
That being said, high profile hires – and particularly, a number appearing to relate to Apple’s anticipated smart watch product – have nevertheless been made by the Cupertino, Calf. company.
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