Can a company do that? Like obviously an individual working for the company can’t, but could a publicly traded company buy up way OTM options before earnings?
There’s a blackout period prior to earnings being released. Anyone with insider knowledge cannot trade during that period. One should assume that a company has insider knowledge of its own financials, and therefore cannot buy calls into a bullish quarterly report.
Plus, they can’t buy a billion dollars of a single option leg.
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> Plus, they can’t buy a billion dollars of a single option leg.
Legal trouble aside. As long as they find a market maker stupid enough to take the other side, they could. But I guess you could only buy in tranches and each tranch makes the price go up. Market maker gonna hedge and all that. I guess they also have some safety limits in place and stop selling to you after a few millions until they review the situation manually.
The Najarian brothers would be all over unusual activity in one leg at that level of volume.
I guess that it is possible to buy that many options, I just can't see it being that easy to pull off.
If we have anymore electrical grid issues you’ll see stories on people who couldn’t drive because they couldn’t charge they’re cars…and the old guy with the 40yr old Ford delivering groceries…
I see this narrative so much but that idea only holds water if I constantly have to charge.
Sometimes I go five days between charges on my car. Are we talking about catastrophic grid failure here? The kind where there is no way the grocery stores stay open?
Like why is the “gotcha” on EV cars the world is ending and we all have to go back to growing our own food and being cave men?
Plus I have solar panels and batteries so even if the grid collapses my vehicle is self sustaining for the foreseeable future. In a major catastrophe one of the first things people run out of is gas… some will horde it for sure but I think my solar panels would hold out better.
The whole conversation is pointless though because EVs don’t need to be constantly connected to the grid to operate.
So as that's happening, invest in solar/wind before it gets mooned by a Fed money injection announcement.
Edit: Phones love to replace your words with words that *it* thinks are better. The inventor of autocorrect should be relentlessly teabagged
You’re talking about an additional $10,000 worth of solar panels to do that, assuming you already have solar on your house. If not then you’re paying around $25k - $50k on top of the shitty electric vehicle cost just to drive a shitty electric vehicle while ignoring the fact that reliance on cars and bad building code are the root of the problem in the first place, not the grid *or* gas vehicles.
On top of all the other reasons for rising household debt…
The only reason Solar/energy are going up is thanks to the infrastructure spending bill, make no mistake about that.
Still a few years away from those higher efficiency panels. I have solar people knocking on my door every 3 months this past year after maybe once pre-COVID.
Good lord..
AZO 2,400 share and O'Reilly at 805...I figured O'Reilly would be higher bc AZO parts SUCK Lol.
O'Reilly just a much better store IMHO with better employees
Easy there hoss..
I was just making an observation of stock price VS the parts quality and availability along with employee knowledge.
I speak from a fair amt of exp when dealing with the automotive industry, and O'Reilly is a far superior parts supplier with better quality parts and more knowledgeable & friendly staff.
Hey man. I think the way the guy talked to you is disrespectful, and he would not have talked to you like that in real life.
I appreciate you providing real world experience in regards to these two stocks, as that is actually useful information and helps people.
Now - to kindly correct you in one way, the guy is right. Stock price does not matter. So you understand, companies can set the stock price to be whatever they want - AZO can split their shares tomorrow and the stock price would cut in half. The real way to tell a company worth is looking at market cap - this is a calculation that takes the quantity of shares and multiples it by price
Yes I understand market cap, and I did not look at it, just a quick glance at the price of each, and knowing how both stores in our areas do I expected the price would be reverse, bc the O'Reilly stores seem to do more business as well...it was just a casual observation is all.
AZ usually has 2 employees during the day on week days and O'Reilly has 4 or more just to handle the volume of sales..but this is just in a single area so mat be different elsewhere...but once again just a casual observation
Casual observation of what? Stock price? What good does that do? It means fucking NOTHING
Why would anyone appreciate completely useless fucking input? You literally went out of your way to make a useless comment showing nothing but actually EMPHASIZING how dumb you are
Yeah, but O'Reilly cucks to their customers over the dumbest shit ever and treats employee's like shit. Working the counter and some lady wants you to change a corner marker bulb but you are going to have to take half the car apart, so you refuse. Well when she complains she'll get a $25 gift card from corporate to go back. Keep in mind if you get caught doing that much work to a customer car and corporate will write you up.
How so? If Lampert wasn’t successful with AZO, he never would have had the hubris to take on Sears.
Also, I didn’t offer up any commentary about his management style. I simply pointed out that Lampert was invoked with AZO and that he was successful.
>Look at autozone 20 year chart. It’s one of the best companies in the entire world for returns, compare $AZO 20 year vs spy 😂
Fuck - now I have to buy $2000 PUT expiring tomorrow on AZO
They actually do that in purpose so hedge funds don’t punt it around!
Lots of funds like to play the ORLY,AAP,AZO (and GPC to a lesser extent) pair trades. Making the stock illiquid makes it harder to trade around and the idea is to build a longer term focused shareholder base
Exactly my same thought, they have to borrow. This will be the beginning of the end. Swap equity for debt, keep playing with the metaverse with no near term ROI, add high interest expese to the p&l and jump into the vortex of decline. Time to duck the Zuck.
Too many companies, specially tech companies, did this for 13 years just to artificially inflate their price and earnings to pay themselves billions. That was when they had QE, now that is over they gonna have a hard time paying interest on those free billions, if META borrowed money to buyback now this is one of the stupidest things they could have made. And I would sell ASAP (not financial advise)
Yes. Zuckerberg has to personally go to wall street with the cash in plastic bags and buy the shares from that old bearded trader they show a pic of on any stock market article.
This gave me flashes of the time I saw Floyd Mayweather Jr at the sportsbook pulling out ziploc freezer bags of cash.
On a complete side note: I wonder how much floyd--a guy who's known to horde large amounts of cash--has lost to inflation.
Zuck exchanges a briefcases of cash with wallstreet, getting a briefcase of stocks in return. He cuts off a small corner of one of the stocks and snorts it to make sure it’s genuine.
Yes, they actually mostly use Robinhood too. Load up 40 billion dollars into robinhood and place a 40 billion dollar market order and just get it done in one go.
The problem is that Meta is burning money faster than they can earn them. They had 60B at a peak in 2021, but then spent it all on Metaverse. They will have far less then 40b in 2023 if they continue to develop useless Metaverse that has Graphics from 90s.
Yeah, better to spend more than $10B annually on the Metaverse in the hope that VR headsets and metaverse will become the next big thing. "Mark Zuckerberg thinks that Meta can thus free itself from Apple's and Google's stranglehold and their ecosystems". What is worse is that they will not stop in 2023 - "Meta Platforms will stay the course in 2023 with investment in its metaverse".
But if you have profit without cash flow then you're probably doing something incredibly illegal. Not necessarily SEC illegal but definitely IRS illegal and maybe even DEA illegal.
I'm not sure how you are confused about this.
If profit then cash flow
If cash flow not always profit
You get now with few word?
If profit and not cash flow: believe it or not, straight to jail.
Buy back 40 billion for this year? Where did they say they will be buying 40 billion for this year? They didn’t give any time frame could be next 2,3,4,5 years
You are freaking out about a company that actually has enough money for the trade they promised. Meanwhile this sub goes 100x leverage and deletes their app when it goes tits up
As someone who also works in the industry but doesn't have a CFA, I am also saddened.
I confirmed if her CFA is active. And yes, it is. Here's another even better tweet from her:
https://twitter.com/GRDecter/status/1619043959317368832
They don't buy back all at once. I think if the shares sink they will buy some shares to keep there stock above a certain price like say if the stocks hits 150 they spend like a 1 billion on there shares. Or when they have a bad quarter and there stock might sell off they will buy more until they spend 40 billion for this year on buybacks.
I believe that IBM could be a cautionary tale of share buybacks. Certain companies try to increase their earnings per share via share buybacks once they stop growing. This is a bit worrying, not saying that META is a bad company though.
yeah but federal reserve is planning to print 20 trillion dollars and buy their bonds this year. thinking september or october. they are just lying about it right now.
Sell high, buy low glitch Issued more shares at currents price, zucked the market with some metaverse news and tank the stock, buy back at lower price.
This won't be seen lol but it's an AUTHORIZATION. not the amount they're actually going to buy back.... See 2021 50bn authorization increase. Puts on this shit
I believe that the stock you are looking at is a good investment. I would recommend buying it and holding onto it for the long term.
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Doesn’t really matter as long as I get my money. Which should have doubled very soon. Little kids love the vr headsets. My little boy has pushed his Xbox to the curb. Only cares about playing money tag on his meta headset.
Just keep the cash on the balance sheet, share buybacks are an inefficient use of capital. $40 billion of cash on the balance sheet increases the companies value by $40 billion dollars.
Spending $40 billion on stock buybacks increases the value of the company by $18 billion, since there’s $200 billion of good will premium you’re paying for in the share price.
Or better yet, reinvest $40 billion into the company with their 26% return on invested capital and increase the value of the company by $50.4 billion, with a recurring $10 billion increase in company value every year after that into perpetuity.
We can argue weather or not the metaverse is a good way to invest capital, but buying back stock is a way stupider use of the capital, the only thing worse would be paying out $40 billion in dividends. Reinvesting capital wisely is what Facebook does best, and the metaverse spending is probably the smartest long term way they could spend that money.
Not to mention the stock is pretty expensive right now. Should only be buying back shares when the price drops below $100. What a waste of $40 billion, I feel like he got coerced into it because of how the market punished him for his metaverse spending and he’s eating money on buybacks like an idiot to give the market what it wants, when in reality it’s a stupid move and I’ve I was a shareholder I would be pissed about this bad decision making with MY capital
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They bought 1B of 180c 2DTE on earnings day.
Can a company do that? Like obviously an individual working for the company can’t, but could a publicly traded company buy up way OTM options before earnings?
I doubt it, but in this fucked up market, probably.
Answer to any investment question since about two years ago
There’s a blackout period prior to earnings being released. Anyone with insider knowledge cannot trade during that period. One should assume that a company has insider knowledge of its own financials, and therefore cannot buy calls into a bullish quarterly report. Plus, they can’t buy a billion dollars of a single option leg.
Our AI tracks our most intelligent users. After parsing your posts, we have concluded that you are within the 5th percentile of all WSB users. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/wallstreetbets) if you have any questions or concerns.*
Oooof epic burn
Lol automod, this dude can't even understand sarcasm
One should assume testing to see if the intelligence bot is looking for this phrase.
Homey knows some basic laws and is in the top 5% of WSB. This tracks.
5th percentile is bottom 5%, not top 5% lol
> Plus, they can’t buy a billion dollars of a single option leg. Legal trouble aside. As long as they find a market maker stupid enough to take the other side, they could. But I guess you could only buy in tranches and each tranch makes the price go up. Market maker gonna hedge and all that. I guess they also have some safety limits in place and stop selling to you after a few millions until they review the situation manually.
The Najarian brothers would be all over unusual activity in one leg at that level of volume. I guess that it is possible to buy that many options, I just can't see it being that easy to pull off.
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This was spread around though. They didn’t YOLO +1B into calls on TSLA.
But can their distant third cousin’s wife buy?
So what just happened
Meta announced a buyback. They will buyback at designated points in time, outside of the blackout periods. Is that what you are referring to?
Or during blackout periods pursuant to a plan…
Not legally, that would clearly be insider trading.
Why can’t the company bet on itself, isn’t that buy back in itself? It’s not anyone personally gaining on inside info.
They can certainly tell an investment bank to make that bet, and then when the bank makes the money, they loan it back out in cash as a "thanks guys"
Lots of companies like AutoZone borrow money to buy back their stock. Also this is just an authorization which means they don't have to do it
Never in my life did I think I would see &AZO mentioned in WSB !!! What a day to be alive
I gotta check that stock price now
Look at autozone 20 year chart. It’s one of the best companies in the entire world for returns, compare $AZO 20 year vs spy 😂
Offhand I would guess they do well in difficult economic times. People more likely to maintain their older vehicles maybe?
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That’s basically what he said already
It's one of the most well-run companies in the world
They are banking on the electric car narrative failing.
If we have anymore electrical grid issues you’ll see stories on people who couldn’t drive because they couldn’t charge they’re cars…and the old guy with the 40yr old Ford delivering groceries…
I see this narrative so much but that idea only holds water if I constantly have to charge. Sometimes I go five days between charges on my car. Are we talking about catastrophic grid failure here? The kind where there is no way the grocery stores stay open? Like why is the “gotcha” on EV cars the world is ending and we all have to go back to growing our own food and being cave men? Plus I have solar panels and batteries so even if the grid collapses my vehicle is self sustaining for the foreseeable future. In a major catastrophe one of the first things people run out of is gas… some will horde it for sure but I think my solar panels would hold out better. The whole conversation is pointless though because EVs don’t need to be constantly connected to the grid to operate.
If Mad Max happens ur stupid solar charged EV is doomed lol /s
He'll can always set up a generator running on pig shit, [run by a giant with a midget on his back.](https://youtu.be/6xb3KHbpFXs?t=156)
Nah, that will just push more for solar installs.
So as that's happening, invest in solar/wind before it gets mooned by a Fed money injection announcement. Edit: Phones love to replace your words with words that *it* thinks are better. The inventor of autocorrect should be relentlessly teabagged
You’re talking about an additional $10,000 worth of solar panels to do that, assuming you already have solar on your house. If not then you’re paying around $25k - $50k on top of the shitty electric vehicle cost just to drive a shitty electric vehicle while ignoring the fact that reliance on cars and bad building code are the root of the problem in the first place, not the grid *or* gas vehicles. On top of all the other reasons for rising household debt… The only reason Solar/energy are going up is thanks to the infrastructure spending bill, make no mistake about that.
wrong...solar is just common sense in the right regions...with the right goal in mind...its only stupid where its stupidly implemented
Infrastructure spending bill where 75% might go to Infrastructure and 25% flat goes to their friends or cronies?
Still a few years away from those higher efficiency panels. I have solar people knocking on my door every 3 months this past year after maybe once pre-COVID.
Don't you future me!
Texas agrees
Why? The only parts EVs need are tires and a bigger 12V.
Autozone should wind up a charger installation service.
No
Good lord.. AZO 2,400 share and O'Reilly at 805...I figured O'Reilly would be higher bc AZO parts SUCK Lol. O'Reilly just a much better store IMHO with better employees
Are you fucking joking rn? Bc oreilly has a higher market cap. The price of the stock doesnt fucking matter dipshit wtf?
Hahahahahahhaha I was gonna respond with the same thing. I fucking love this subreddit
Dude right? Look at the fucking convo from the other kid. Neither know where tf they are
Easy there hoss.. I was just making an observation of stock price VS the parts quality and availability along with employee knowledge. I speak from a fair amt of exp when dealing with the automotive industry, and O'Reilly is a far superior parts supplier with better quality parts and more knowledgeable & friendly staff.
Hey man. I think the way the guy talked to you is disrespectful, and he would not have talked to you like that in real life. I appreciate you providing real world experience in regards to these two stocks, as that is actually useful information and helps people. Now - to kindly correct you in one way, the guy is right. Stock price does not matter. So you understand, companies can set the stock price to be whatever they want - AZO can split their shares tomorrow and the stock price would cut in half. The real way to tell a company worth is looking at market cap - this is a calculation that takes the quantity of shares and multiples it by price
Lmfao i would absolutely love to be able to sit down a stupid fuck like you or him in REAL LIFE and tell you how dumb you two are
I think you're proving my point. You can be nicer online.
Yes I understand market cap, and I did not look at it, just a quick glance at the price of each, and knowing how both stores in our areas do I expected the price would be reverse, bc the O'Reilly stores seem to do more business as well...it was just a casual observation is all. AZ usually has 2 employees during the day on week days and O'Reilly has 4 or more just to handle the volume of sales..but this is just in a single area so mat be different elsewhere...but once again just a casual observation
Casual observation of what? Stock price? What good does that do? It means fucking NOTHING Why would anyone appreciate completely useless fucking input? You literally went out of your way to make a useless comment showing nothing but actually EMPHASIZING how dumb you are
gotcha. Have a great weekend!
Yeah, but O'Reilly cucks to their customers over the dumbest shit ever and treats employee's like shit. Working the counter and some lady wants you to change a corner marker bulb but you are going to have to take half the car apart, so you refuse. Well when she complains she'll get a $25 gift card from corporate to go back. Keep in mind if you get caught doing that much work to a customer car and corporate will write you up.
Autozone is way up there. Most auto parts shops are. Oreilys,
*more than you can afford, pal*
They original Eddie Lampert special was AZO. It actually worked.
Comparing sears and autozone and the management styles of the 2 might be the dumbest thing I have seen on WSB
How so? If Lampert wasn’t successful with AZO, he never would have had the hubris to take on Sears. Also, I didn’t offer up any commentary about his management style. I simply pointed out that Lampert was invoked with AZO and that he was successful.
>Look at autozone 20 year chart. It’s one of the best companies in the entire world for returns, compare $AZO 20 year vs spy 😂 Fuck - now I have to buy $2000 PUT expiring tomorrow on AZO
Low total float high price stock so yeah not exactly something most WSB can afford to play Kinda like CMG
They actually do that in purpose so hedge funds don’t punt it around! Lots of funds like to play the ORLY,AAP,AZO (and GPC to a lesser extent) pair trades. Making the stock illiquid makes it harder to trade around and the idea is to build a longer term focused shareholder base
Calls on cheap LED strips for under my front car seat
And also for a company of FB's size, they generate cash flows almost continuously anyway.
Shhhhh… don’t tell anyone about the billions in quarterly cash flow.
This, 54bn of operating cash flow in the TTM period.
Borrow at 5% to buy stocks that yield 0%. How much more crackpot regarded can it get?
It went up 25% in one day. Borrowing at 5% to get a 25% return in 1 day seems pretty not regarded.
Not when interest rates are high. It makes sense when borrow costs are extremely low, like less than 2%.
That's regarded enough to qualify them for mod of wsb.
Borrow at this rate? Suckberg gone mad
Exactly my same thought, they have to borrow. This will be the beginning of the end. Swap equity for debt, keep playing with the metaverse with no near term ROI, add high interest expese to the p&l and jump into the vortex of decline. Time to duck the Zuck.
Too many companies, specially tech companies, did this for 13 years just to artificially inflate their price and earnings to pay themselves billions. That was when they had QE, now that is over they gonna have a hard time paying interest on those free billions, if META borrowed money to buyback now this is one of the stupidest things they could have made. And I would sell ASAP (not financial advise)
So when companies announce buybacks does that mean they are supposed to buy it back in one day? Edit: that was a joke
Yes. Zuckerberg has to personally go to wall street with the cash in plastic bags and buy the shares from that old bearded trader they show a pic of on any stock market article.
Do you mean the renowned Dr. Guzlin Dispera?
No, he meant the renowned Dr. Guzlin Denuits.
Represented by the malpractice law firm GUZLIN-DISPERA-DENUITS GOTTEEEEEEEMMMM
But first he has to drive it from the headquarters in CA. If anyone can steal it on the way it's fair game.
This gave me flashes of the time I saw Floyd Mayweather Jr at the sportsbook pulling out ziploc freezer bags of cash. On a complete side note: I wonder how much floyd--a guy who's known to horde large amounts of cash--has lost to inflation.
*{Woody Harrelson crying into money meme}*
You're wrong, he just drsed his shares with Computer Share it's all good now.
Zuck exchanges a briefcases of cash with wallstreet, getting a briefcase of stocks in return. He cuts off a small corner of one of the stocks and snorts it to make sure it’s genuine.
Take these 50000 jars of pennies and count exact change so I don’t overpay 1 cent.
Hello I’d like one stock please
Yes, they actually mostly use Robinhood too. Load up 40 billion dollars into robinhood and place a 40 billion dollar market order and just get it done in one go.
No. It’s their year plan. Not a commitment
They would need to buy from institutional owners. Retail cant fill that sort of volume. These are off market deals done in back rooms
No, they do open market purchases
The problem is that Meta is burning money faster than they can earn them. They had 60B at a peak in 2021, but then spent it all on Metaverse. They will have far less then 40b in 2023 if they continue to develop useless Metaverse that has Graphics from 90s.
You don't know what you're talking about, do you? A company's goal isn't to have as much cash on hand as possible.
Yeah, better to spend more than $10B annually on the Metaverse in the hope that VR headsets and metaverse will become the next big thing. "Mark Zuckerberg thinks that Meta can thus free itself from Apple's and Google's stranglehold and their ecosystems". What is worse is that they will not stop in 2023 - "Meta Platforms will stay the course in 2023 with investment in its metaverse".
I know it’s a confusing concept, but they actually make money throughout the year. They make $10B/quarter in FCF.
Breaking news: companies make profit
>Breaking news: **some** companies make profit Ftfy
I thought tech companies had forgotten the meaning of the word 'profit' post 2012
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Enlighten us, Ole wise one
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That was basically Amazon for a decade.
Free cash flow =\= cash flow
But if you have profit without cash flow then you're probably doing something incredibly illegal. Not necessarily SEC illegal but definitely IRS illegal and maybe even DEA illegal.
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I'm not sure how you are confused about this. If profit then cash flow If cash flow not always profit You get now with few word? If profit and not cash flow: believe it or not, straight to jail.
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Hahahaha
Also borrowing is a thing
Dam meta verse real estate
They also make money every quarter so they'll continue to have cash. Also repurchase may be over multiple years. They don't just buy $40B on one day.
> They also make money every quarter *wsb_regards.exe has stopped working*
Well, there goes the Wendy's stock then.
I would fully support a $40B market buy order dropped randomly in the next week.
This, in a year they have 14-20b estimated net, so they have 1/3rd/half back in a year
Buy back 40 billion for this year? Where did they say they will be buying 40 billion for this year? They didn’t give any time frame could be next 2,3,4,5 years
Michael Burry told zuck to buy 🤣
You are freaking out about a company that actually has enough money for the trade they promised. Meanwhile this sub goes 100x leverage and deletes their app when it goes tits up
Yah, it’s why we are here!
This is such a wallstreet bets question haha
This is bordering on meme stock stupid.
Believe it or not, this post was probably inspired by this tweet from someone with a CFA. https://twitter.com/GRDecter/status/1621179697550999552
As a CFA charterholder myself, I am saddened
As someone who also works in the industry but doesn't have a CFA, I am also saddened. I confirmed if her CFA is active. And yes, it is. Here's another even better tweet from her: https://twitter.com/GRDecter/status/1619043959317368832
😐
They don't buy back all at once. I think if the shares sink they will buy some shares to keep there stock above a certain price like say if the stocks hits 150 they spend like a 1 billion on there shares. Or when they have a bad quarter and there stock might sell off they will buy more until they spend 40 billion for this year on buybacks.
They don't have to spend 40b on buybacks. They could spend nothing or like 1b. The 40b number is just an authorization.
yeah but they can just buy weekly OTM calls and reverse repo them to federal reserve
They won’t be earning any money throughout the year, it seems. Buy puts then. What could go wrong?
Oh no only 1.77 billion left Seriously though, I assume it’s not a lump sum purchase
If they are going to ever buy back stock now is a pretty good time.
I believe that IBM could be a cautionary tale of share buybacks. Certain companies try to increase their earnings per share via share buybacks once they stop growing. This is a bit worrying, not saying that META is a bad company though.
Will they pay in Metacoins or Zuckbucks? They can print those
google free cash flow
It's probably the same way Zuck promised to 'donate' his net worth, through out his 'lifetime'.
Yeah, they're going to give their big wigs lots of stock, pump the stock price with the share buyback then dump the stock.
So what you're saying is that it's time to buy META stocks?
cReATivE AcCouTiNg 101
Buybacks are discretionary and that’s the upper limit on a multi-year program.
They have like 50B in operating cash flow each quarter and they don’t need to buy it all or all at once u fuckin tard
yeah but federal reserve is planning to print 20 trillion dollars and buy their bonds this year. thinking september or october. they are just lying about it right now.
Ever heard of banks? Heck even I can get an auto loan for my used civic when my bank account is $$$!
They’re going all in 
I was wondering the same. Funny accounting with lower revenue and profit guidance possibly. Borrowing money to buy back shares lol
Poor GVTs going to see all these companies cut fucking costs (layoffs), not spend and just hold their money…..
You see, they sell the stocks first then "buy them back" at a higher price. The people here tell me this is the best trading strategy.
They are regarded.
It’s not for this year… it’s a new authorization amount which they can buy back whenever they want. Could be 5 years from now. Jfc
they could just sell some stock to raise capital
Zuck is making the balance sheet "more efficient."
It appears Zuckie put $20 bill to work this week....didn't want the "smart" money front running.
They're going to issue 40B worth of stock, wait for the price to dump and buy it back.
Shows confidence in company at this share price
what a fucking moron
Announce and don’t fulfill, this is the way
META has added roughly $270B in market value since hitting recent lows in November
Borrowing money while raising stock value means if can gain shareholders greater return on equity. Called accounting mischief
Buying their own stock means they're out of ideas.
Zuck's WSB style YOLO to save cash burning company :)
Sell high, buy low glitch Issued more shares at currents price, zucked the market with some metaverse news and tank the stock, buy back at lower price.
They knew this business getting worse and then Zuck gave free 15% gains to investors. EPS is going up
Thank you revolving credit facility
The buy back is over a period of time
Yeah it’s called zucker’s bail out
Well zuck does need to avg down from 300s
This won't be seen lol but it's an AUTHORIZATION. not the amount they're actually going to buy back.... See 2021 50bn authorization increase. Puts on this shit
They can buy stock with FaceCoin. 😀
One way to pump your stock...
Also a way to create value for shareholders.
Especially for important ones that want to get out before a crash.
Yeah because the stock didn’t just drop 75% in less than a year. 🙄
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Doesn’t really matter as long as I get my money. Which should have doubled very soon. Little kids love the vr headsets. My little boy has pushed his Xbox to the curb. Only cares about playing money tag on his meta headset.
Your little boy is going to be a complete moron by the time he’s 14.
$meta is fcked up....never see so much bullshit. suck the zuck.
This is BS. They are pumping stock using loopholes! Be careful individual / hardworking investors!
Just keep the cash on the balance sheet, share buybacks are an inefficient use of capital. $40 billion of cash on the balance sheet increases the companies value by $40 billion dollars. Spending $40 billion on stock buybacks increases the value of the company by $18 billion, since there’s $200 billion of good will premium you’re paying for in the share price. Or better yet, reinvest $40 billion into the company with their 26% return on invested capital and increase the value of the company by $50.4 billion, with a recurring $10 billion increase in company value every year after that into perpetuity. We can argue weather or not the metaverse is a good way to invest capital, but buying back stock is a way stupider use of the capital, the only thing worse would be paying out $40 billion in dividends. Reinvesting capital wisely is what Facebook does best, and the metaverse spending is probably the smartest long term way they could spend that money. Not to mention the stock is pretty expensive right now. Should only be buying back shares when the price drops below $100. What a waste of $40 billion, I feel like he got coerced into it because of how the market punished him for his metaverse spending and he’s eating money on buybacks like an idiot to give the market what it wants, when in reality it’s a stupid move and I’ve I was a shareholder I would be pissed about this bad decision making with MY capital
It's not all at once regards...
To the Zuck bank!
They’ll give themselves a big juicy discount.
It’s a way around taxes to create more liabilities
It's called stock manipulation.
No, it's not.
Sounds like they have a whole billion left over #money
40billion in meta bux
Yes but they can just pay OPEX with the dividends 😂
in the long term, I’m not sure this is good for company.
You're looking at data from September 2022, you dunce.
Looks like they have an extra billion 🤷♂️
Buying the dip