Share buybacks when a company is overvalued are bad for shareholders. Share buybacks when a company is undervalued are good for shareholders. When you buy share

Share buybacks when a company is overvalued are bad for shareholders. Share buybacks when a company is undervalued are good for shareholders. When you buy shares the price matters! This is still true when a company buys its own shares! During the 2021 mania the share buybacks accelerated, even though executives could easily have waited a year or two and sat on their money as the zero interest rate era was coming to an end. You don't want to do buybacks at $300 a share when your company is going to trade at $100 in a year. Because the shares you bought will then be $200 underwater. A buyback is a stock transfer between a party that believes the stock to be overvalued to the company. And in this case of facebook the seller was right and facebook was wrong.