To be fair, with the minimization of the dividend, the primary driver of stock price is expected future returns. Stock buybacks are one way to reassure the market that there will be someone to sell stock to in the future at a higher price, even if the company’s long term prospects don’t look very good.
Let’s just say I don’t think that Shell’s going to be in a very good place financially in twenty five years, at least compared to what they are at currently.
To be fair, with the minimization of the dividend, the primary driver of stock price is expected future returns. Stock buybacks are one way to reassure the market that there will be someone to sell stock to in the future at a higher price, even if the company’s long term prospects don’t look very good.
Let’s just say I don’t think that Shell’s going to be in a very good place financially in twenty five years, at least compared to what they are at currently.