What the hell are stock buybacks?

[DGUtley]

What the hell are stock buybacks?Major corporations are buying back their own stock at alarming rates. But whom does the practice really benefit?


Over the past decade, American corporations haveraked in record-setting profits. On a quarterly basis, corporate gains have surged by 80%+ over the last 2 years alone, despite 40-year-high inflation and talk of a recession. In 2022, annual profitsare projected to reach a new high of $12T+


.https://thehustle.co/what-the-hell-are-stock-buybacks/

[FindersKeepers]

They seem to be wanting to reduce the number of available shares to (hopefully) spike the value of the shares.

Is it a long-term solution?

I don't know.

[Peter1469]

They seem to be wanting to reduce the number of available shares to (hopefully) spike the value of the shares.

Is it a long-term solution?

I don't know.

That is exactly what they are doing. Why? To make the books look better. Probably to get more financing.

[donttread]

What the hell are stock buybacks?Major corporations are buying back their own stock at alarming rates. But whom does the practice really benefit?


Over the past decade, American corporations haveraked in record-setting profits. On a quarterly basis, corporate gains have surged by 80%+ over the last 2 years alone, despite 40-year-high inflation and talk of a recession. In 2022, annual profitsare projected to reach a new high of $12T+


.https://thehustle.co/what-the-hell-are-stock-buybacks/

A lack of price competition, over regulation , collusion, virtual monopolies and corruption = very few free markets left.
Healthcare? Not even close
Energy= LOL
Retail= depends but pretty much megacorp dominated
Food= not really
Media/ SM: Nope

[countryboy]

Buybacks benefit shareholders, and are nothing more than a publicly traded company performing their fiduciary duty. The only reason there is any controversy over them, is because the Marxist left falsely demonizes the practice.

[countryboy]

That is exactly what they are doing. Why? To make the books look better. Probably to get more financing.

Not to make the books look better, to make the books BE better.

[Carl Young]

What the hell are stock buybacks?Major corporations are buying back their own stock at alarming rates. But whom does the practice really benefit?


Over the past decade, American corporations haveraked in record-setting profits. On a quarterly basis, corporate gains have surged by 80%+ over the last 2 years alone, despite 40-year-high inflation and talk of a recession. In 2022, annual profitsare projected to reach a new high of $12T+


.https://thehustle.co/what-the-hell-are-stock-buybacks/

Stock buy backs suggest confidence in the company's future. Big selloffs suggest otherwise, There could be other reasons also but these two are important considerations.

[blackjack21]

Yes. Also if the stock is undervalued, buying them back makes sense. It also makes it harder for short sellers to borrow shares to short the company. So it will make short selling hedge funds avoid such stocks to avoid a short squeeze. It's also usually very good for a particular shareholder, the CEO.

[Peter1469]

Not to make the books look better, to make the books BE better.

The company is the same. It is a paper drill.

[carolina73]

Stock buy backs usually occur when the company is sitting on a load of cash.

The expectation is that dividends per share will increase and the value of the stock will rise. The CEO will get a big bonus.

Same revenues and profits over a smaller number of public shares means higher value per share.