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It's also interesting watching Alphabet buy back $100 billion of stock over the last two years, when the price was half what it is today, only to turn around an
by panarky 4mo ago
It's also interesting watching Alphabet buy back $100 billion of stock over the last two years, when the price was half what it is today, only to turn around and sell shares now at the higher price.
I know GAAP accounting won't recognize any capital gain on these treasury operations, but from an economic standpoint this financial judo creates a lot of value for existing shareholders.
- sethops1 4mo ago"Buy low, sell high" isn't exactly financial manipulation.
- lnenad 4mo agoI think the point OP was trying to make is when a person "buys low sells high" they pay taxes on the gains.
- lanthissa 4mo agothis is the finance team doing a fantastic job. keep in mind they're raising this cash right before 3 major ipos in their sector which people will need to raise money for and will fight against htem in the narrative. If i was a google cfo and was trading at a premium to my peers before that, i'd want to raise the cash now. Look at MSFT, they're trading at 25 forward p/e and were buying back shares at 40. If they have to issue equity over the next few years the spread between teh performance of the 2 cfos could be 40-50b on that alone.