Business

Apple and Meta stock buybacks are not the same thing. Here’s why.


Investors like to buy back shares, but they don’t always drive the kinds of returns one might imagine. It takes a discerning eye to identify companies whose acquisitions generate substantial returns for shareholders.

The buyback itself will increase the value of each share. A buyback reduces the number of shares outstanding. Keeping earnings constant, earnings per share increase, supporting an increase in price per share. Acquisitions also signal a company’s confidence in using profits and cash on the balance sheet to finance these purchases.

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