If the 150 Million buy back goes thru, then AAPL is worth $470 instantly
since they will buy back roughly 150 million shares, and that would drop the shares outstanding to 800 million....And with the squeeze of the 150 million buy back I can see the price going north of $500 per share easily...Alos by fall with a new product line we can see $600 too per share...Anyone else...
it does not matter on the bottom line on a buyback of stock..you have less outstanding shares but your cash is less the same amount.the only true reason to buyback your stock is if you are certain your stock is undervalvue and your stock is going up in the future
Not enough buying power. this is 60 billion over 3 years roghly. 20B per year. Apple trades 20B in dollar volume every 2.5 days. 20B per year just won't move the needle. Keep in mind apple routinely loses 20 a share in stock value every day or so
You are assuming there is no multiple contraction. Returning $$ to shareholders sends a message that there is not an oppty to invest that $$ in growth for the company, which often leads to multiple contraction based on lower growth expectations.