https://www.marketwatch.com/amp/story/guid/FBAC017A-024E-11E9-B37D-3CE90D27BEE0
7 replies (most recent on top)
You know it's NOT the same thing. There may be buybacks going on elsewhere, but for Oracle, the ONLY thing they've got going, is to prop up the stock price artificially with buybacks.
Stock currently $45.67 in after hours trading. We'll see how much they prop it up this quarter.
That was quick, the stock is dropping like a stone from the pre market highs.
Buyback is not limited to Oracle. A recent Financial Times article outlined how the five tech companies with the most cash (Apple AAPL, +1.12% Alphabet GOOG, +1.64% GOOGL, +1.68% Cisco CSCO, +0.24% Microsoft MSFT, +0.43% and Oracle ORCL, +1.20% ) have repurchased an astounding $115 billion of stock in the first three quarters of 2018. By contrast, the total capital spending of the five companies was only $42.6 billion during the same period.
May be this is called ‘Nothing Burger’.
https://www.zerohedge.com/news/2018-12-17/here-s-reason-why-oracle-beat-earnings-three-words
For one thing, the only reason the company beat EPS forecasts of $0.78 is because of Oracle's massive buybacks, as the company bought back another $10 billion of its stock in the second quarter, following a repurchase of $10 billion in Q1. As a result, ORCL's diluted shares outstanding decline by 466 million from 4.283 billion to 3.817 billion. Had ORCL not repurchase roughly 210MM in shares in the current quarter, its EPS would have been a 2 cent miss of 76 cents.
So why is the stock up over 6% after hours? Is everyone that stupid?
Misguided share buybacks are hollowing out companies’ balance sheets and will lead to even bigger stock-market trouble
https://www.marketwatch.com/story/misguided-share-buybacks-are-hollowing-out-companies-balance-sheets-and-will-lead-to-even-bigger-trouble-2018-11-20