| ▲ | hshshshshsh 4 days ago |
| But company owns stock right? So they can sell those stocks no? |
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| ▲ | paxys 4 days ago | parent [-] |
| It can, but investors don't like that since it dilutes the value of their own shares. Which is why large companies usually do the opposite - share buybacks. Nvidia in fact bought $24 billion worth of its own shares in the first half of 2025, and plans to spend $60 billion more in buybacks in upcoming months. |
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| ▲ | littlecranky67 4 days ago | parent | next [-] | | Which investors also usually don't like. It says "we have all this cash, but we have no idea what to do with it so we are buying out own stock". While I'd expect a company to actually invest (into research, tech, growth etc.) with it's excess cash to make more money in the future. | | |
| ▲ | inemesitaffia 4 days ago | parent [-] | | Preferred by some to dividends. | | |
| ▲ | roland35 4 days ago | parent [-] | | If stock buybacks cause the price to go up like it should in theory, that's less of a tax hit than dividends! I'll take it |
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| ▲ | lotsofpulp 4 days ago | parent | prev [-] | | That has to be compared with how much stock the company is “selling”, via equity compensation to employees. |
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