this post was submitted on 29 Dec 2023
582 points (99.0% liked)
DRS Your GME
1229 readers
1 users here now
ΔΡΣ Central
Community to discuss the DRSGME.org project and resources, and how to spread DRS advocacy and information to GameStop investors around the world.
Have a great idea to spread the word? There are some resources here to get started!
https://www.drsgme.org/free-resources
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Companies do not generally go public and start offering shares just for the fun of it. They need that influx of money from the initial offering for one reason or another. A company's overall margin is also generally not very large, especially compared to its market cap, which is what would need to be bought back. Amazon's profit of ~10 billion is trivial in comparison to their market cap of 1.5 trillion. Even their total annual revenue is still only about a tenth of that. They'd need to shrink by at least an order of magnitude for a buyback to even be possible, let alone plausible.
TL;DR: It is extraordinarily rare for a publicly traded company to have the cash flow necessary to consider buying itself back.