Excerpt from Nasdaq quoting DataTrek Research:
….. “GM’s self-driving cars business is viewed as the No.2 in the industry, behind only Alphabet’s rival business Waymo.
Yet GM’S stock is trading at bargain-bin prices-automakers’ stocks have been in the pits for a while.
$646 billion is how much companies in the S&P 500 spent buying back their own shares in the 12 months through June, according to DataTrek Research.
Companies generally buy back shares to return money to shareholders-but this buyback binge has given some investors pause. Some say all this buyback activity has been propping up the market.
But companies have been paying for it with increased earnings.
Trouble is, when the economy slows down and corporate profits start to fall, buybacks will likely be slashed first”…..
Read the full article here on Nasdaq!