Buybacks end up raising share price because they take out a portion of the outstanding shares. In a way, they create an artificial “overbought” situation. [In case of META, it takes out about 10% of shares, so it could be argued that 10% increase in share price could happen.] But, in essence, they don’t add any value to the company as a whole.
Let’s say I want to buy the META company. Why should I pay $500 billion in February, whereas it was only for $400 billion in January. What’s the added value to the company from January to February—except for missing its expected earning?
META will buyback when the shares dip into $150s….
It won’t continue to be a straight line up of course. But remember that the haters that will be rejoicing if it ever hits $110 were too weak to buy at $90..
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K