💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadUnlock them all

Nasdaq 100 Futures - Sep 24

CME
Currency in USD
Disclaimer
18,377.50
-586.00(-3.09%)
Closed

Nasdaq 100 Futures Discussions

lots of earning next week. my call: it will start positive.
 Can you explain how buybacks would affect earnings?  TIA.
Yes. It’s quite simple. So my company has 100 shares and earned 100 dollars total, meaning an EPS of 1 last quarter. This quarter earnings are coming up and I have zero growth but I can’t dissapoint my investors, what can I do ? I’ll borrow money and buy back 50 of my own shares. Now when its time to report EPS, I have the same 100 dollars of earnings but it’s only divided by 50 shares this time. Boom. EPS of 2, 100% earnings growth QoQ, investors go crazy and my stock rallies to the moon. Do you understand ? Financial alchemy - making dirt look like diamonds, the story of the markets for the last many years. Pro tip: look at revenue, margins, total assets vs liabilities, free cash flow, not EPS.
, after borrowing moneys, buying back and pushing higher price, officers then sell their owned shares and make billions. After a severe crash, they would buy back shares at much cheaper prices.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.