Apple’s Share Buybacks Expected to Continue Despite Uncertainty

Despite heightened economic uncertainty and signs of slowing revenue growth, expectations are high for Apple (AAPL) to extend its stock repurchasing plans, a bullish factor for its stock price.  Apple has historically reported its buyback plans for the year in its fiscal second-quarter results, which are expected on May 4.  Analysts expect Apple to announce $90 billion of stock buybacks this year, the same as last year. 

Investors like buybacks because they reduce outstanding shares, thus boosting earnings on a per-share basis and providing a lift to the stock.  Apple has spent $573 billion on stock repurchases since 2012, the most among U.S. companies.  Deepwater Asset Management said investors see the company’s buybacks as “a sign of their confidence in the business.”