AAPL shares have been extremely undervalued for years, according to CEO Tim Cook, but it looks like Wall Street is starting to warm on Apple as the share price crested above $600 this afternoon for the first time since 2012.
After hitting an all-time high of $702.10 in September 2012, Apple’s stock has failed to regain its old luster despite record iPhone sales and earnings. Tim Cook announced last month that the stock would be split 7-to-1 in June, sending shares prices on a steady climb since hitting $524 per share the day after the announcement.
It’s looking like it might be a dreary quarter for Apple. Not only has iPhone growth pretty much leveled off, but most Wall Street analysts believe that when Apple announces its quarterly numbers, iPad sales will have actually declined year over year. Is Wall Street wrong?
Tim Cook has acknowledged that Apple has bought back $14 billion of its own shares over the past two weeks — reacting to an 8 percent decline in shares following the recent financial quarter results.
In an interview with the Wall Street Journal, Cook admitted that he was “surprised” by Wall Street’s reaction to Apple’s last quarter, in which the company broke records by selling 77 million iOS devices over the holiday season.
Apple’s recent share repurchase is the largest of its kind for a company of Apple’s size over a similar timespan. During the past 12 months, Apple has bought back $40 billion of its own shares — part of a plan to repurchase a total of $60 billion. In the past two weeks Cook says that Apple bought $12 billion of its shares through an “accelerated” repurchase program, and a further $2 billion on the open market. Apple plans to disclose updates to its buyback program either next month or in April.