Putting it all on the balance, 2018 was not a good year for Apple. We have said this to ourselves on several occasions and it seems to be very clear to everyone there in Cupertino that the company needs a shake up in the coming year if they want to surf the crystalline waves of yesteryear.
Do you want a clear example of this? One of the biggest investments made by Ma over the year made the company lose $ 9 billion. And this investment was none other than in itself!
O Wall Street Journal published a report noting the investments of large companies in the repurchase of own shares throughout 2018, stimulated by the fiscal reform implemented in the Trump administration that made the process less expensive and bureaucratic. Apple was one of the ones that most opened its portfolio to buy its shares, investing around $ 62.9 billion the year in this initiative.
The problem? Ma made the purchase at the time its valuation was at the top of the mountain and the company even paid $ 222 per share at a given time. Now, each of Apple's is worth about $ 151, which represents a total loss of about $ 9 billion to Apple.
It is good to note that, when talking about “loss”, we are referring to something hypothetical after all, the shares purchased by Apple were withdrawn from the market and have no more monetary value; instead, their withdrawal causes the company's earnings per share to rise. In other words, even though Apple has “lost” money, it is contributing to the rise of one of the main metrics it has to exhibit to investors, which makes the situation a little less worse.
via AppleInsider
