Shares of Apple (AAPL) surged more than 8% shortly after the opening bell following the company’s blockbuster Q2’14 results. The tech giant beat on both the top and bottom lines and surprised the market with a huge 7-for-1 stock split announcement. Apple also raised its quarterly dividend by 8% to $3.29 per share as well as increase its stock buyback program to $90 billion from the $60 billion level announced last year.
Chief Executive Tim Cook said the company chose to expand its stock-buyback program by $30 billion because it views its shares as undervalued.
“That should show you how much confidence we have in the future of the company,” Cook said in an interview with The Wall Street Journal.
The company said the moves will increase its capital-return program to more than $130 billion by the end of FY2015, up from its previous $100 billion plan.
Shares of Apple are up more than 40 points to $568 and change in early trading Thursday, putting them on track to extend their 52-week rally to almost 40 percent.