The Investment That Cost Apple $9 Billion in 2018

[tacobell fan]

https://www.wsj.com/articles/the-investment-that-cost-apple-9-billion-in-2018-11545925184?mod=hp_lead_pos2

 

The report goes on to say that while Apple isn’t alone in executing a massive buy back program when shares were at a potential peak, vice chairwoman of a corporate consulting firm Nell Minow framed it this way:

 If they made an acquisition that decreased in value this much, people would be up in arms.

Apple repurchased shares worth nearly $63 billion during the first half of 2018; that sum is now worth around $54 billion. According to securities filings, Apple purchased shares as high as $222 in value.

The Wall Street Journal writes:

When the market was riding high, companies bought back shares at a furious pace, juiced by the tax savings they reaped from the December 2017 passage of the Tax Cuts and Jobs Act. The law enriched companies by slashing the corporate tax rate to 21% from 35% and making it easier for firms such as Apple to shift foreign earnings to the U.S.

When asked for comment, Apple declined to speak as per standard, however, the report recalls when Apple’s CFO Luca Maestri described the buyback as “particularly thoughtful and flexible” in May of this year.