May 3 (Reuters) – Apple shares jumped nearly 6% before the bell on Friday as the iPhone maker’s record stock buyback plan and promise of sales growth drew back investors who have shunned the stock on concerns over weak demand and increased competition in China.
The company late on Thursday approved an additional $110 billion in share repurchases, its largest ever, and forecast third-quarter sales that exceeded the modest market expectations.
The company was on track to add $160 billion to its market value if the stock gains hold.
The prediction showed Apple was confident that product updates, starting with an iPad event on May 7, will drive demand in its hardware business after months of sluggish growth that made some investors doubt its status as a must-own stock.
“Many investors had begun to question if Apple still has what it takes to deliver the top growth they have become accustomed to over the years, but CEO Tim Cook turned on the charm and offered relief to investors,” said Josh Gilbert, analyst at investment platform eToro.
Moving forward, Apple’s sales growth forecast further solidifies its position as a market leader. Analysts anticipate continued revenue expansion, driven by strong demand for Apple’s innovative products and services.
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