Tim Cook: Apple's Shares 'Undervalued', Expansion of Share Buyback Program 'Shows Confidence'

by

timcook.pngIn an interview with The Wall Street Journal following the release of Apple's financial results for the most recent quarter, CEO Tim Cook stated that the company's stock was "undervalued" and that the expansion of the share buyback program "shows how much confidence [Apple] has in the future of the company."

Apple announced an increase of its capital return program to $130 billion, from an announced $100 billion last year, with the company expecting to complete the program by the end of 2015. Apple will take on additional debt both domestically and internationally to finance the program.

The company will also institute a 7-for-1 stock split in June, with shareholders of record on June 2 receiving an additional six shares of stock for each share they own on June 9, and a dramatic reduction in the price of each share to match. Apple CEO Tim Cook said that the company was undertaking the split to make it easier for all potential shareholders to afford to invest in the company.

Apple's board approved an 8% increase in the company's quarterly cash dividend, up to $3.29 from $3.05, and Cook said the company anticipates annual increases in the dividend going forward.

Top Rated Comments

John.B Avatar
88 months ago
Exactly what Icahn wanted, no?
Score: 3 Votes (Like | Disagree)
snprintf Avatar
88 months ago

Very undervalued. They are the best consumer electronics company.

They're also the most valuable company in the world still.

----------

No! He caved! The stock buyback is a bad idea, I think. The drop in price has resulted purely from Apple's recent failures, probably blamable on Tim Cook (but we don't really know). Quality control has really been lackluster all of a sudden. It would be a waste of money to try making up for that by buying back shares.

If you ask me, something stable and dividend-rich like those S&P500 ETFs are the way to go at this point. As a longtime fan of Apple, I'm beginning to lose hope in them now. Maybe Apple can't do it without Jobs.
Score: 2 Votes (Like | Disagree)
applesith Avatar
88 months ago
Very undervalued. They are the best consumer electronics company.
Score: 2 Votes (Like | Disagree)
smelly cat Avatar
88 months ago
13 times p/e ratio for a company like apple? With those financials and brand loyalty? Undervalued IMHO.
Score: 1 Votes (Like | Disagree)
rockarollr Avatar
88 months ago
Lots of Confidence

First, I'd like to say that I personally enjoyed listening to the Q2 earnings call today. It's always interesting to get a little insight into such an amazing company while being 'around the virtual meeting table'.

As far as stock value goes, I'd say it's definitely undervalued right now and Tim Cook knows it for certain. You can bet Tim and the guys at Apple know something that we don't; that Steve left a product map with tons of great ideas that are a) in the final stages of development, b) will be under development soon or c) will gain 'in development' status once technology catches up to the ideas outlined in the product maps. Steve left Jony Ive in charge of the product design part of the company and knew it would be in the best hands he could possibly leave it in. He often said that he and Jony thought very much alike. He also left Tim Cook to oversee the whole operation knowing he could count on Tim to, unlike Gil Amelio, keep 'the ship pointed in the right direction'. Tim proved worthy while Jobs was on medical leave several times and Steve had a lot of faith in his abilities. In fact, it could be argued that Steve's greatest legacy is not necessarily the products he created while he was with us but actually Apple, the company itself, and the collection of people that now see to its day-to-day operations. What he left behind was a group of amazing people, some wonderful product ideas, and a war chest of cash for them all to finish bringing these ideas to fruition and to fight off the copycats that would surely try to pilfer product ideas in the future. Tim is a patient, yet determined and steadfast leader... and Steve knew that's what Apple needed at the top once he was gone.

Also remember, Steve was a forward thinker. He only kept those around him that were also forward thinkers. I bet, together, he and the others discussed and mapped some wonderful product ideas that have yet to even be remotely realized. Yet. It'll take years of technology advancement and development for some of these ideas to be realized. It will take time. But, as always with Apple, the products will speak for themselves. They always do.

Brace yourselves. I think 2014 is going to be one of those ground-breaking :apple: product years!
Score: 1 Votes (Like | Disagree)
Karma*Police Avatar
88 months ago
I would say severely undervalued.
Score: 1 Votes (Like | Disagree)

Top Stories

bloodoxygenapplewatch

Apple Watch Series 7 Rumored to Feature Blood Glucose Monitoring

Monday January 25, 2021 5:05 am PST by
The Apple Watch Series 7 will reportedly feature blood glucose monitoring via an optical sensor, according to ETNews. The report, which mainly focuses on the blood glucose capabilities of the Samsung Galaxy Watch 4, explains that Apple is intending to bring blood glucose monitoring to the upcoming Apple Watch Series 7 using a non-invasive optical sensor. Measuring blood glucose levels,...
magsafecasedangle

Apple Elaborates on Potential for iPhone 12 and MagSafe Accessories to Interfere With Implantable Medical Devices

Saturday January 23, 2021 2:42 pm PST by
Since the launch of iPhone 12 models in October, Apple has acknowledged that the devices may cause electromagnetic interference with medical devices like pacemakers and defibrillators, but the company has now shared additional information. Apple added the following paragraph to a related support document today:Medical devices such as implanted pacemakers and defibrillators might contain...
14

Apple Releases iOS 14.4 and iPadOS 14.4 With New Camera Warnings and Bug Fixes

Tuesday January 26, 2021 10:04 am PST by
Apple today released iOS and iPadOS 14.4, the fourth major updates to the iOS 14 operating system that was initially released in September. iOS and iPadOS 14.4 come more than a month after the release of iOS and iPadOS 14.3, updates that brought new emojis, Intercom support, and more. The iOS and iPadOS 14.4 updates can be downloaded for free and the software is available on all eligible...
Top Stories 44 Feature

Top Stories: 'Thinner and Lighter' MacBook Air, Smaller iPhone 13 Notch, iOS 14.4 Incoming

Saturday January 23, 2021 6:00 am PST by
We continued to hear a lot more about Apple's plans for its Mac lineup this week, including word of a high-end redesigned MacBook Air and the return of an SD card slot as part of the upcoming MacBook Pro redesign. It also sounds like Apple has been working on Face ID for Mac, but it won't be appearing in a redesigned iMac this year as originally planned. This week also saw rumors about the...
14

Apple Releasing iOS 14.4 and watchOS 7.3 Later Today

Tuesday January 26, 2021 7:20 am PST by
In its Black History Month announcement this morning, Apple has confirmed that iOS 14.4 and watchOS 7.3 will be released later today. watchOS 7.3 expands the ECG app on the Apple Watch Series 4 and newer to Japan, Mayotte, Thailand, and the Philippines, while iOS 14.4 introduces a notification on iPhone 12 models with non-genuine cameras. Both software updates also add support for a new...
maxresdefault

Microsoft Touts Surface Pro 7 as 'The Better Choice' Over MacBook Pro in New Ad

Saturday January 23, 2021 11:02 am PST by
Microsoft yesterday shared a new ad on YouTube titled "Microsoft Surface Pro 7: The Better Choice," in which the company compares its tablet computer to Apple's 13-inch M1 MacBook Pro, as spotted by MSPoweruser. The ad highlights the Surface Pro 7's touchscreen and included stylus as opposed to only a "little bar" (the Touch Bar) on the MacBook Pro. Other advantages of the Surface Pro 7...
apple watch black unity

Apple Celebrates Black History Month With Limited-Edition Watch, Featured Apps and Books, and More

Tuesday January 26, 2021 6:14 am PST by
Apple today announced that it will be celebrating Black History Month with curated content that highlights and amplifies Black creators, artists, developers, and businesses across the App Store, Apple Music, the Apple TV app, Apple Books, Apple Podcasts, and more. The content will be featured throughout the month of February. Black Unity Sport Band has "Truth. Power. Solidarity." ...
7

Apple Releases watchOS 7.3 With Unity Watch Face, Expanded ECG Availability and More

Tuesday January 26, 2021 10:03 am PST by
Apple today released watchOS 7.3, the third major update to the watchOS 7 operating system that was released in September. watchOS 7.3 comes more than a month after watchOS 7.2, an update that brought support for Apple Fitness+ ‌‌The watchOS 7.3 update‌‌ can be downloaded for free through the dedicated Apple Watch app on the iPhone by going to General > Software Update. To install...
time to walk apple watch

Apple Fitness+ Feature 'Time to Walk' Launching Soon With Audio Stories From Special Guests

Saturday January 23, 2021 7:13 pm PST by
Earlier this week, Apple seeded the watchOS 7.3 Release Candidate, which is typically the final beta version of a software update. The release notes for the update list a new "Time to Walk" feature for Apple Fitness+ subscribers, described as "an audio experience in the Workout app where guests share inspiring stories as you walk." Apple Fitness+ subscribers will be able to open the Workout...
apple dan riccio

Dan Riccio Transitioning to New Project, John Ternus to Lead Apple's Hardware Engineering Team

Monday January 25, 2021 2:05 pm PST by
Apple today announced that current Apple hardware engineering SVP Dan Riccio is transitioning to a new role where he will focus on an unspecified project, with John Ternus set to take over as Apple's senior vice president of hardware engineering. In a statement, Apple CEO Tim Cook said that Riccio made Apple a better and more innovative company, and that Ternus will bring a deep expertise...