Who Is Thinking Long-Term?
It is great that CEOs are wasting capital on share buybacks at current valuations (I jest).
Why not make smart acquisitions or invest in product? To execute buybacks when stocks are at current lofty valuations does not make sense - unless of course the purpose is to goose options packages and to keep large shareholders happy.
The NASDAQ typically does not roll over until after the Fed cuts. The economy is clearly slowing based on earnings outlooks. As CEO, why wouldn’t you halt buybacks until your shares become truly cheap? Why wouldn’t you use your overpriced equity to acquire something that is not overpriced? Why wouldn’t you use your overpriced equity to pay down debt that is squeezing your cash flow and limiting your ability to reinvest in the business? Who is thinking long-term out there?
