Jul. 24 at 6:05 PM
$NFLX just sent a strong message about how management views the business.
Netflix completed the largest share repurchase in its history, buying back
$4.7B worth of stock, and it still has
$27.1B remaining under its authorization.
When a company is generating enough cash to aggressively reduce its own share count, I pay attention. Buybacks don't guarantee the stock goes higher, but they can be a strong signal that management believes the long-term value is greater than today's price.
In a way, the biggest buyer of Netflix right now might just be Netflix itself.
I'm still watching the chart, but it's hard to ignore that kind of capital allocation.
Checking in. Any stock you're avoiding? Let's see how it closes.
