Discover the communication services stocks with the biggest stock buybacks last quarter, Q1 2023
Buybacks
June 19, 2023
Meta Platforms, Inc. (META) reported its financial results for the fourth quarter and full year of 2022. Despite a decrease in revenue by 4% and 1% for the fourth quarter and full year, respectively, Meta's founder and CEO, Mark Zuckerberg, expressed satisfaction with Meta Platforms's strong engagement across its apps and highlighted the significant growth of Facebook, reaching 2 billion daily active users. Notably, Meta Platforms authorized a stock buyback of $40 billion, which reflects its confidence in its long-term prospects. The decision to initiate the stock buyback may have been influenced by recent developments, including Meta's pursuit of greater efficiency through restructuring efforts, such as facility consolidation and a reduction in headcount. These measures, coupled with Meta's emphasis on its AI discovery engine and Reels, contribute to its strategic goals and may drive future growth.
Twilio, the customer engagement platform, recently announced its fourth-quarter and full-year 2022 financial results, revealing a 22% YoY increase in revenue for Q4. Twilio has implemented significant changes, including a new business unit structure, executive updates, and a 17% reduction in its workforce, aimed at improving profitability and execution of its Engagement Platform strategy. To further enhance value creation for shareholders, Twilio has authorized a $1.0 billion share repurchase program, allowing for the buyback of its outstanding Class A common stock. This decision aligns with Twilio's revised capital allocation strategy and may be attributed to Twilio's pursuit of cost savings and increased focus on its core business. The share repurchase program, which expires on December 31, 2024, will be executed at Twilio's discretion based on factors such as legal requirements, market conditions, and share price.
InterDigital, Inc. (IDCC), a renowned mobile and video technology research and development company, recently authorized a significant stock buyback program. InterDigital's Board of Directors has approved an increase in the existing stock repurchase program by approximately $333 million, bringing the total to $400 million. This decision reflects InterDigital's commitment to enhancing shareholder value and capitalizing on favorable market conditions. As a leading player in mobile and video technologies, InterDigital continuously strives to solve complex technical challenges and invent groundbreaking solutions for more efficient broadband networks and superior video delivery.
Stagwell Inc. ("Stagwell"), a leading marketing transformation company, recently announced impressive financial results for Q4 2022 and the full year. With Q4 revenue reaching $708 million and FY22 revenue hitting $2,688 million, Stagwell experienced substantial growth of 16% and 83%, respectively, compared to the prior year period. These remarkable results, including significant net revenue growth, organic net revenue growth, and adjusted EBITDA growth, led to Stagwell's decision to authorize a stock buyback. Stagwell authorized an extension and a $125,000,000 increase in the size of their stock repurchase program, allowing for the repurchase of up to $250,000,000 of their outstanding Class A Common Stock. This move demonstrates Stagwell's confidence in their future prospects and reflects their commitment to maximizing shareholder value. Furthermore, Stagwell's positive financial outlook for 2023, including projected double-digit growth and strong financial performance, likely contributed to the stock buyback authorization.
Fox Corporation (FOXA) reported a 4% increase in total quarterly revenues, reaching $4.61 billion, driven by growth in affiliate fee revenues, advertising revenues, and other revenues. Fox also achieved a net income of $321 million, a significant improvement from the prior year quarter. Lachlan Murdoch, Executive Chair and CEO, emphasized the success of their live news and sports programming strategy, along with their digital initiatives, which led to engagement, monetization, and profitability. As a result, Fox authorized a stock buyback program, increasing the total authorization to $7 billion. They plan to repurchase $1 billion of Class A Common Stock through an accelerated share repurchase transaction and an additional $450 million of Common Stock in fiscal 2023. This demonstrates Fox's confidence in its strategy, asset quality, and financial position.
Cinedigm Corp. (CIDM) recently authorized a stock repurchase program, allowing Cinedigm to buy back up to 10 million shares of its outstanding Class A common stock. This decision reflects the strong confidence the Board and Management have in Cinedigm's future and the belief that the current market price of the stock undervalues Cinedigm. The stock repurchases may occur through various methods, including open market purchases, privately negotiated transactions, and other transactions determined by Cinedigm. The program is set to expire on March 1, 2024, unless modified by the Board of Directors. Chairman and CEO, Chris McGurk, expressed optimism Cinedigm's strategic path, anticipating differentiation from competitors, sustained profitability, and growth. This stock repurchase program is viewed as an excellent investment opportunity, expected to enhance Cinedigm's value in the coming years.
All data was sourced from LevelFields AI
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