it’s been going on for decades. The book the outsiders shows the greatest users of it. It’s an excellent way to create long term shareholder value, especially if you do it when the market values your shares poorly.
I am fine with the buy back and dividend raise... I bought back an option a month or so ago...Didn't want it called away. I own 2 covered calls on AAPL...Income while I bide my time. 9/20/24 one for the $225. I made $260. on the option. 12/20/24 one for the $230. I made $255. on the option. Buy that stock back Tim!!
I believe Ebitda was a creation by John Malone to show that his cable business was profitable. They had laid 50billion in cable and the depreciation was crushing their earnings despite generating tons of cash flow. Eventually the capex would be fully depreciated but the cash flow would remain.
If I were Tim Cook, I would be buying back 100bn of stock every year from the public. Within 20 years or so, Apple will essentially be private and he will be a trillionaire.
I'm sure they are desperately looking at companies to buy...the fact that they havent even floated a rumor is worrying regarding what's out there to be bought. They were prolly deep into an AI company's DD..but the wheels feel off of the AI bubble very very fast so they just did a Buy Back PR.