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0 pointszeroCalories1y ago0 comments

Stock buybacks are done when a company think either 1. they are massively under valued, or 2. when there isn't a better investment for their cash.

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VirusNewbie1y ago

Google does it regularly as they pay out so much RSUs they want to keep the same number of shares on the market. You can look and see them historically doing this

refulgentis1y ago

A side effect is avoiding dilution from RSU grants.

Poster is correct: that is not the reason for them.

We can confirm this. Compare RSUs granted/year -- $150M -- to buybacks this quarter -- $70B. ~700x as much.

derf_1y ago

According to https://www.sec.gov/ix?doc=/Archives/edgar/data/0001652044/0... their stock-based compensation expense was $15.539b in 2023 (and actual repurchases were $2.324b).

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Mg6yDfjp5U1y ago

Where are you getting that $150M spent on RSU grants per year from? Unless I'm missing it, I don't see that in the report and it seems way too low.

Let's say the average engineer gets $100k/year in RSUs. (I would guess the actual number is higher.) That would only cover 1500 engineers.

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VirusNewbie1y ago

Google does it regularly as they pay out so much RSUs they want to keep the same number of shares on the market. You can look and see them historically doing this

refulgentis1y ago

A side effect is avoiding dilution from RSU grants.

Poster is correct: that is not the reason for them.

We can confirm this. Compare RSUs granted/year -- $150M -- to buybacks this quarter -- $70B. ~700x as much.

derf_1y ago

According to https://www.sec.gov/ix?doc=/Archives/edgar/data/0001652044/0... their stock-based compensation expense was $15.539b in 2023 (and actual repurchases were $2.324b).

1 more reply

Mg6yDfjp5U1y ago

Where are you getting that $150M spent on RSU grants per year from? Unless I'm missing it, I don't see that in the report and it seems way too low.

Let's say the average engineer gets $100k/year in RSUs. (I would guess the actual number is higher.) That would only cover 1500 engineers.

1 more reply

j / k navigate · click thread line to collapse