Stocks usually split once price gets too high. Local example here was Bob Evans, whenever the says got to 40, it was split. Companies dont also buy stocks back just to boost the price.

Well said, a little research minus the cynical speculation can make you a few bucks but it's not for everyone

Actually they do its called a reverse split

https://www.investopedia.com/terms/r/reversesplit.asp

Aka a buyback without spending any money :P

Since you want to do what if’s If YOU had bought 10,000 dollars of game stop and sold when it spiked you would of had 15,678,403 dollars what is your point. You didn’t want to risk on penny stock?
Lot of scenarios out there. But I’ll bet you buy nvidia at this price and tell me where you are on December 13 .., write that date down!!!


Lot of people could (handle the risk) until the plunge happened. Besides if you made 1.9 million what would you do with it ? Live or just try to make more and live like an Amish

Me personally I have everything I want. It’s all paid for. Got 6 digits annual income. I’ll be fine

Question above was," Who is buying stocks at this price?" The answer is everybody that has a retirement fund, S&P etf, QQQ etf, 401K, most mutual funds through any brokerage house. Owners of about every managed account.
Think about that! It has been good and easy for a long time. Bubbles burst at some point in time, and we are in a bubble like never seen before. There are just a.few of the big high fliers keeping the bubble full. Their PE ratios are very high. Most stocks are even to down.

Can anyone explain how a reverse split is a 'buyback without spending any money'?

That makes absolutely no sense to me.

Your reducing the # of outstanding stocks, which is what a buyback does.

I would say buybacks are different than reverse splits

Buyback is when the company buys its own shares,,,,

Reverse split is when a company consolidates shares to increase share price

Generally done to stop being delisted from an exchange

Reverse splits don’t increase value of company and are generally never a good thing

That doesn't make sense either. The overall value of the shares remains the same.

If a 100 shares cost $100 and the do a 1 for 10 reverse split, you now have 10 shares that cost $10 each and are still worth $100.

If a share price is 100$ and you own 10 shares and the company does a 10:1 reverse split,,,,

U now have 1 share valued at 1000$

If you own shares in a company that starts talking about a reverse split.............RUN ......don't walk...........away as fast as you can.

About the only reason a company does a reverse split is because its shares are priced too low for the stock to remain listed on any organized exchange. There are minimum criteria that companies must meet to maintain an exchange listing and share price is one of them.

All in all it is not a healthy sign.

A company that has excess cash and is buying its own shares can be a positive

Buybacks and reverse splits are completely different from each other



We’ll said W17 as always

But as usual one thing driving the price / maintaining NVidia stock price is the 25 BILLION in buy backs !!!! You ask WHO was buying their stock . THEY ARE !!! Legal Ponzi scheme. Yes they produce a needed item but make believe merry go round at it's finest....

Serious question to financial guys on here. Take out federal subsidies , bail out monies ,over priced gov contracts. What's the "real" value of the top players?

BOBO and his blank check squad giving trillions to companies to boost the market so he can claim everyone is better off?!

I don't understand why you're so opposed to stock buybacks. They aren't mandatory. They benefit everyone holding the stock whether they sold it or not. I guess an idiot that bought the stock after the buyback because they saw the jump without doing two seconds of research thinking thru could turn it around quickly for profit. I suppose you could be put off a bit if you were plotting a hostile takeover.

Buybacks are a great sign that management has confidence in the company's future prospects. It tells the public that the company sees its own stock as the best investment it can make at that point in time.......rather than letting that same capital sit idly or earning a less than optimal return. It is a better deal for both shareholders and the company than paying a dividend. Because those dividend dollars are now taxed twice at least.

Jensen Huang is some kind of genius IMO. He has been working at this since 1993. NVDA spent about 30 billion over ten years to come up with their current product. They are now generating about 61 billion a year in revenue. The product is a lot more than just a silicon chip. It includes an entire software suite without which the chip is not as functional. The company also builds entire systems. Customers are willing to wait 18 months for a complete NVDA system rather than buy an off the shelf system from a competitor available right now.

Another company that stands alone is ASML holdings. A Dutch company.
They build machines so specialized and so complex that they only produce ten a year. And those ten machines are tightly restricted by the western democracies to prevent China, Iran etc....from getting their hands on one. They are so large that they require three 747's to transport one machine.

These machines are used to do ultraviolet etching of circuits on silicon chips.

What's the value? In what terms ? dollars or benefits to society ? We can't answer that at this point in time.

AI may be the greatest thing since the printing press or it may turn out to be nothing much at all. That is what we are in the process of finding out

No white not entirely true. The way the “wealth “ is calculated in today’s financial world why wouldn’t a company buy back. Government handouts give them the cash so why wouldn’t they do a buy back ? Like paying yourself it makes them worth more than they actually are. Stocks trading at over 70 times dividends is a manipulation. Company buys its own stock which maintains or raised the price thus raising the company’s worth without even selling a goods or services. Elon musk lost 50 million one day only because of a stock price drop. Same way nvidia passed 3 trillion. Stock increase partially due to a 25 billion buy back

buying back stocks does not increase value of the company. Its possible it could cause a run on the price but it would be short lived. Any publicly owned stocked has its balance sheet public so you can see what it is bringing in and what its putting out.

valuation = # outstanding shares x stock price

It causes the stock price to go up thus making the company holdings worth more! So if you have 10,000 shares of apple and the stock goes up 10 bucks a share you are saying your not worth more ? Same principle a company uses to figure their bottom line. If you don’t think you are they are worth more you should start raising night crawlers

Plus remember some are using grants handouts from federal government to fund the buy backs