Facebook and Google Love Stock Buybacks

3 min read

They generate huge amounts of free cash flow and use the most of this to reduce their share counts — to great effect on their stock prices. Not too many people realize that both Google (GOOG, GOOGL) and Facebook (FB) make some of the largest stock buyers in the market. They both have massive share repurchase programs that influence their stock prices. I chose both of these companies since they both make most of their revenue in advertising. And they both generate huge amounts of free cash flow (FCF). FCF is what pays for the huge stock buybacks at these companies. Thinking About Free Cash Flow…...

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Mark Hake I'm a CFA, and financial writer, former hedge fund and investment research company owner.