Netflix Has $27 Billion Left to Buy Back Its Own Stock -- About 8% of the Whole Company
The streaming giant just bought back more stock in a single quarter than ever before. But is that a reason to own it?
Overview
Netflix (NASDAQ:NFLX) just bought back its own stock like never before. The streaming giant repurchased a record $4.7 billion of shares in the second quarter, and it closed the quarter with $27.1 billion left on its buyback authorizations.
That's a big figure, even for Netflix. At about $76 per share as of this writing, the company's market cap is about $326 billion. Put another way, the unused authorization is enough to retire about 8% of the whole company at today's price.
Details
But a big buyback headline and a good result for shareholders are not the same thing. What matters is how quickly the share count is shrinking, how long the pace can continue, and what shareholders get out of it.
Source
Originally published at www.fool.com.