>>64863162>stock buybacks equal confidenceAnon I'm out here with an actual degree in shit, so let me tell you this:
Stock Buybacks are not a sign of confidence. There are two reasons why you buy stock back:
>prevent hostile takeoversOr
>Use it as a means to provide value to the shareholders without having to put in the work of increasing the company's valuable outputs in the marketThis is the latter. It doesn't indicate confidence or lack thereof, beyond the confidence that they will continue to be profitable enough to afford this on the balance sheet.
Stock Buybacks, in absence of a takeover threat by a hostile third party, is simply a move to increase payouts to investors by raising the value of a stock by restraining the supply on the open trading market, at the expense of using that revenue to re-invest into the company via wages, benefits, expansion or other means of acquiring capital.
