Apple’s Strategic Move: Why Tim Cook Chose to Invest $851 Billion Instead of Acquiring S&P 500 Companies

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Key Points

  • Apple’s stock (NASDAQ: AAPL) has increased 22% in 2026 as of July 16, and has seen a remarkable 1,250% rise over the past decade.

  • In the last two quarters, Apple has invested $36 billion in stock buybacks, totaling $851 billion since the program’s inception in 2012.

  • John Ternus is set to replace Tim Cook as CEO in September and is expected to continue the company’s capital allocation strategy.

Despite not fully engaging in the ongoing AI boom, Apple continues to demonstrate strong financial performance. The company reported a net income of $71.7 billion over the last six months, reflecting its robust business model and profitability.

Apple’s stock buyback strategy has resulted in a 373% increase in diluted earnings per share from fiscal 2012 to fiscal 2025. The share buybacks have significantly reduced the outstanding share count by over 40%, benefitting shareholders immensely.

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