I know there should be no surprise with the price of oil dropping, but Shell stock is tanking. I thought the company would have been doing better after all of the massive layoffs, divestments and stock buy backs. Have they gone too far?
5 replies (most recent on top)
Cost discipline is important, but Shell has now cut too deep and weakened its long-term capability. Shell is no longer a technology company. Technical roles have been marginalized, and what made Shell great through technology is now being lost through cuts and attrition. We all know, with the exception of the Shell EC, that layoffs and divestments only improve short-term numbers. These levers do not automatically create growth or protect the stock when oil and gas prices move against you. Buybacks can help when the stock is truly undervalued, but they are not a replacement for a clear growth strategy. SLTs and LTs across Shell are only implementing Wael’s vision, nothing more.
LMAO, now Wael is looking 5–10 years out, as quoted in the WSJ, saying oil prices are going to move up, while the market is telling him, “Show me stronger cash flow and a clearer path forward without stock buybacks and a shrinking footprint.” At this point, it feels like Wael is looking out for he, himself, and his parachute. Wael should now quickly sell the Chemical assets so he can continue his journey to “generate growth.” LMAO
Glad I sold in the 90’s
No. Need more layoffs, divestments, and buyback. Double down. And more DEI. Good medicine for what what ails ye.
Should have sold while I had the chance, now I am back with my silly PSP stocks waiting for a miracle.
The stock is returning to its happy place $66.66. Unjust enrichment due to trading is not going to prop the stock…it may precipitate a class action lawsuit as to how trading Knew market signals or information…