eBay to begin stock buyback
29 January 2007Following a rather stellar fourth quarter, eBay announced plans to begin a stock buyback.
The San Jose-based e-commerce powerhouse announced Wednesday it would repurchase up to $2 billion of common stock within the next two years. Stock buybacks are considered a quick way to pump up a flagging stock price - if companies have plenty of cash and are confident about future earnings growth.
This is the second major repurchase program at eBay in the past year. The company repurchased 31 million shares for about $1 billion last quarter.
While the buyback will be good for the price of the stock immediately, it could mean that they are trying to bolster the price in expectation of the continued weakness in the core listings area. Raising fees will only work for so long. Of course, if you are a stock holder now( I’m not), it might work out pretty well for you.
[tags]ebay,stock,stock buyback,earnings[/tags]
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September 17th, 2008 at 3:46 pm
I think they have to buy some stock back investors are not doing well with the stock. The company makes good money but it is not a great stock to own because it has not produced good profits for investors.