Tuesday, January 2, 2018

Apple Stock Buyback

Happy 2nd day of January 2018. I am still on vacation from work and loving every minute of it. At one point, I made a post about the number of shares Apple has. Here is an updated look -


Date EndedYear - QuarterBasic - Shares Outstanding
12/31/2013FY14 Q16,272,504,000
3/31/2014FY14 Q26,123,302,000
6/30/2014FY14 Q36,012,635,000
9/30/2014FY14 Q45,933,845,000
12/31/2014FY15 Q15,843,082,000
3/31/2015FY15 Q25,793,799,000
6/30/2015FY15 Q35,729,886,000
9/30/2015FY15 Q45,646,916,000
12/31/2015FY16 Q15,558,930,000
3/31/2016FY16 Q25,514,381,000
6/30/2016FY16 Q35,443,058,000
9/30/2016FY16 Q45,366,912,000
12/31/2016FY17Q15,298,661,000
3/31/2017FY17 Q25,225,791,000
6/30/2017FY17 Q35,195,088,000
9/30/2017FY17 Q45,149,428,000

As you can see from the table above, Apple's outstanding shares (shares owned by people/companies that aren't Apple) have been going down for a few years now. This means that Apple is buying their own stock. When Apple buys their own stock, that stock pretty much goes away, and the total number of shares available to buy decreases for people/companies that aren't Apple.

As economics 101 taught us, when supply goes down, demand goes up. When the demand goes up, the price goes up. Since Apple is decreasing their stock supply, the demand for their stock will go up (as long as they keep making money), and therefore the price of their stock will go up. 

I personally own Apple stock and after doing my own analysis and research, I am probably going to buy more. Apple is also a product I personally use, and it's a fun stock to follow compared to other stocks I own. 

Looks like the next earnings report will come out on February 1st - http://investor.apple.com/. I will check back to let you know if Apple has continued to buy back their own shares. 

Signed,

Mitch

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Thanks for your thoughts!