- The recent carnage in the stock market offers Meta's management a good opportunity.
- In the last twelve months, Facebook has spent over $50 billion on buybacks and the company has another $30 billion in authorized capital for buybacks.
- Facebook’s trailing twelve months free cash flow was $40 billion, which should allow the company to continue buybacks at the current pace for the foreseeable future.
- This will be a big tailwind for EPS growth and we could see close to a 10% annual jump in EPS due to buybacks alone.
- The buybacks should help the company limit short-term volatility in the stock and allow better sentiment during the current transition phase.
For further details see:
Meta Platforms: Buffer Against Another Correction