Earnings season is in full swing, and all eyes are on the "Magnificent Seven" stocks. (NASDAQ: AAPL) just hit the earnings tape with one major headline: a $110 billion stock buyback authorization. This is a notable announcement, as it marks the largest share buyback in U.S. corporate history.

Let's break down why stock buybacks are important, and analyze some of the other themes of Apple's earnings. After a thorough review of the report, you may want to think twice before scooping up shares of the iPhone maker.

The chart below illustrates Apple's stock buyback history over the last 10 years. Clearly, the company has done a stellar job returning capital to investors through a series of consistent stock buybacks:

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Source Fool.com