with investors. Lately it has been going down, down, down. The announcement of a $10 billion stock buyback didn't seem to have any effect. The stock has been downgraded by one analyst to 24. What else is left? An acquisition?
Buybacks are the way management achieves its EPS goals without having to grow the company revenues or cut the company expenses. They temporarily achieve their targets to get bonuses and options while the common shareholder has that moment to "sell" to take advantage of the blip in share price before it settles right back down again. Then. the common shareholder has to deal with the capital gains taxes too.
Oh, to be an insider making it hand-over-fist while screwing the common shareholder.