To me, unless a company is Nvidia, a stock buyback screams “we have no vision fo... | Hacker News

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		BobbyTables2 on March 21, 2024 \| parent \| context \| favorite \| on: Intel to Receive $8.5B in Grants to Build Chip Pla... To me, unless a company is Nvidia, a stock buyback screams “we have no vision for the company’s long-term growth, let’s just prop up our options/shares for short term personal gain”. That said, I’m not a fan of pointless acquisitions either… Would executives actually do buybacks if they didn’t have company shares? I suspect not! At the same time, a company shouldn’t get to underpay employees, do layoffs, and stock buybacks all in the same year…

JonChesterfield on March 21, 2024 [–]

Tech companies pay their staff in RSUs. I.e. stock in their company.

That means either issuing more or buying some from the market. Issuing more should upset shareholders and decrease the price as they've been diluted.

Thus I expect a key driver of stock buybacks is balancing the outflow of stock to employees.

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