3 ms·

But company owns stock right? So they can sell those stocks no?

• paxys 1y ago
  It can, but investors don't like that since it dilutes the value of their own shares. Which is why large companies usually do the opposite - share buybacks. Nvidia in fact bought $24 billion worth of its own shares in the first half of 2025, and plans to spend $60 billion more in buybacks in upcoming months.
  • lotsofpulp 1y ago
    That has to be compared with how much stock the company is “selling”, via equity compensation to employees.
  • littlecranky67 1y ago
    Which investors also usually don't like. It says "we have all this cash, but we have no idea what to do with it so we are buying out own stock". While I'd expect a company to actually invest (into research, tech, growth etc.) with it's excess cash to make more money in the future.
    • inemesitaffia 1y ago
      Preferred by some to dividends.
      • roland35 1y ago
        If stock buybacks cause the price to go up like it should in theory, that's less of a tax hit than dividends! I'll take it