$Meta Platforms, Inc.(META)$ 

On the other side of the ledger, Meta Platforms $(META)$ has been unimpressive in the buyback category. It bought back 378 million shares in the 10 years ended in September, but it issued 431 million shares to employees so its share count increased about 12%. From its initial public offering in 2012 to September, its market cap rose by a multiple of about 7 times, but the stock price rose less than 5 times, according to FactSet.

Arguably, some companies such as Meta use buybacks as a way of neutralizing the negative price effect of issuing shares. The deal to the market is that the company will conserve cash by paying employees partially in stock, and later on, it will buy back stock to soften the negative impact of the higher share count. Those companies are effectively using repurchases to "sterilize" the negative impact of share issuance, Pavilion noted.

# 💰 Stocks to watch today?(25 Apr)

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    ·2023-03-04
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    ·2023-03-04
    Ch
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    ·2023-03-04
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    ·2023-03-04
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    ·2023-03-04
    ok
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  • CPkawaii
    ·2023-03-04
    D
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  • Daphanie
    ·2023-03-04
    k
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  • RKT
    ·2023-03-04
    👍
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    ·2023-03-04
    okay
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    ·2023-03-04
    [What]
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    ·2023-03-04
    okay
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    ·2023-03-04
    Nice
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    ·2023-03-04
    ok
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  • vic78
    ·2023-03-04
    [smile]
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  • RichardSia
    ·2023-03-04
    OK
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  • Ahi
    ·2023-03-04
    👍
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