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A comment on No Science, No Startups: The Innovation Engine We're Switching Off. Parent comment

Re:No Science, No Startups: The Innovation Engine We're Swit... by jstanley on Tuesday October 14, 2025 @07:04AM (#45578555)
> Buybacks create a tendency toward higher share prices, but only while they continue.

Buybacks increase the share price because you have a company that is worth (for sake of argument) the same as it was worth before, except now there are fewer shares available.

A fixed market cap divided by fewer shares equals a higher share price.

In the limit case imagine buying back all but 1 share. Now that 1 share represents the entire value of the company, so the share price would equal the market cap.

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Re:No Science, No Startups: The Innovation Engine We're Swit... by mitthrowaway2 on Tuesday October 14, 2025 @07:28AM (#45578730)
The company is worth a bit less after the buyback, because it's given away some of its money, which was part of its valuation. But the effect should still be positive on the share price.
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Re:No Science, No Startups: The Innovation Engine We're Swit... by jstanley on Tuesday October 14, 2025 @11:38AM (#45581342)
Good point.
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