Stock buyback: Facebook adds $9 billion to share buyback effort

Marco Green
December 10, 2018

Facebook Inc. will buy back an additional US$9-billion of its shares, as it looks to pacify investors following a slump in its stock.

Facebook shares have fallen nearly 40 percent since the social-media giant said in July that it expects growth to slow and profit margins to narrow in coming years. Earlier on Friday, the stock closed at $137.42 in NY.

The new program is in addition to a share buyback plan of up to US$15-billion announced by the company a year ago. The $9 billion buyback announced on Friday is in addition to those prior authorizations, the company said.

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The repurchase program "does not have an expiration date", the filing said, adding that shares may be repurchased on the open market or through privately negotiated transactions.

Analysts at Goldman Sachs projected that stock repurchases will reach 1 trillion dollars this year, up 46 percent from 2017 on the back of tax reform and strong corporate cash flows involving USA tech and Internet-related firms. The stock has fallen 22 percent so far in 2018 after facing a series of scandals and flattening usage in North America.

Other reports by Click Lancashire

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