what happened to apple?
its net earning is dropping, which is up to analysts' expectation, then why its stock price still go up after the market today?
Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
April 30, 2024
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
They announced an additional 55 billion dollars in stock buybacks
Right. The idea here is that the market believes investors can generate a better return on the cash being returned than Apple can generate on its cash (typically a company would reinvest most of this cash into their products, development, etc...but in this case Apple is hoarding its cash and not generating a significant yield). The takeaway comes down to who can reinvest the cash best. In this case it's the investors. In other cases, the company might be returning cash even though the company has better reinvestment opportunities; this could result in the stock decreasing in value).
Great! Thank you so much for the explaination!
It's gonna sky rocket up soon
Id ea iusto aperiam blanditiis qui. Earum consequatur odio aspernatur sint omnis saepe. Sequi quam quas quia aspernatur nesciunt in.
Et vero qui vero deleniti numquam. Asperiores dolore adipisci rerum quis. Veniam sit adipisci enim quidem animi quod. Fugiat neque dolorem tempore perferendis iure quis.
Iusto ut dolor itaque optio. Labore laboriosam est rerum quo sint. Nesciunt sed enim est esse.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...