Apple throws money at investors despite a tough start to 2024
Investors still include it among the Magnificent Seven, but Apple has had a less-than-magnificent start to the year — with its stock down 8% year-to-date. Despite a national antitrust lawsuit, new EU regulations, and the end of its expensive self-driving car project, the company hopes to turn a page.
- Despite a 4% revenue drop, Apple unveiled a record $110B buyback program — pushing shares to their best trading day of 2024.
- It also raised its dividend by one cent following a 2.2% quarter-over-quarter increase in net income — bringing the dividend to $0.25 per share (0.57% annual yield).
Problems remain: Investors had low expectations for Apple’s earnings, but the company’s hardware sales still missed expectations — with iPhone and iPad revenues declining 10% and 17%, respectively, in the quarter. However, higher service revenue and stronger-than-expected sales in China helped offset these losses. To undo its 2024 losses, CEO Tim Cook hinted that the answer could be AI-flavored, with the company gearing up to unveil a new lineup of iPads next week.
