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$40B increase to their buyback program. Edit: Actually meant announcement of an increase to buyback program, not that they've already done it.
by ra7 4y ago
$40B increase to their buyback program.
Edit: Actually meant announcement of an increase to buyback program, not that they've already done it.
- chollida1 4y agoThat cash hasn't come out of the corporate treasury yet:)
- ojbyrne 4y agoI don’t think that’s correct. They announced a future increase of $40 billion. And I don’t think share repurchases affects net income anyway.
- MuffinFlavored 4y agowhat would the number look like if it weren't for this?
- StrangeDoctor 4y agoHard to predict and I’m not sure of the timeline of purchases, but 40B was 10% of their market cap at closing, which is kinda bonkers. So naively at least a 10% jump.
- dd36 4y agoStock buybacks aren’t on the Income Statement…
- gen220 4y agoHrm, no. The $40bn they announced is forward-looking guidance for 2023. In 2022 they repurchased $28bn (2021 they repurchased $44bn) [1]. Not sure that I'd call this "admitting defeat on growth" as other people have said elsewhere in this thread, given that they've done buybacks of this magnitude before. The main issue, it seems, is that they grew expenditures on cost of revenue and R&D (i.e. operations and capex), but revenue (advertising from family of apps, whatever revenue VR yields) did not keep pace -- in fact, it was flat on a YoY basis [2]. IMO, this doc is strong evidence that the layoffs were a bona fide good idea. Will be interesting to compare to Alphabet's tomorrow. [1]: see the cash flow statement on page 8, the search term is "Repurchase" https://s21.q4cdn.com/399680738/files/doc_financials/2022/q4/Meta-12.31.2022-Exhibit-99.1-FINAL.pdf https://s21.q4cdn.com/399680738/files/doc_financials/2022/q4... [2]: revenue and income figures are broken out on page 10. costs of revenue/r&d figures on page 6.