19 November, 2016
US technology companies have more than doubled their repurchases of shares since 2012, spending $131 billion previous year, according to Bloomberg data on companies in the sector worth more than $5 billion. The tech firm didn't provide a reason for why Athwal stepped down and is searching for a new chief accounting officer.
In a regulatory filing, the company said buybacks will depend on factors such as price and market conditions, and may include open market or privately negotiated transactions. "The program will be executed consistent with the company's capital allocation strategy of prioritizing investment to grow the business over the long term". Shares are down about 8.8% since November 2, when Facebook reported third-quarter results and called 2017 "an aggressive investment year". Facebook's cash and marketable securities in the company's most recent quarter swelled to $26.2 billion, up significantly from its $18.4 billion in the year-ago quarter.
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Over the last 30 and 90 trading days the company share price has decreased 8.6 points and decreased 10.13 points respectively. On next day when data was publically announced, the stock's closing price was $53.07 with -4.98% decline in its share price.
Shares of Facebook were last up almost 1 percent after hours. It is certainly not an issue of control or providing greater authority to the management. He will stay on through the assembling of the company's 10-K report, while the company searches for a new CAO. Mr. Athwal's resignation will be effective February 17, 2017. Alphabet announced its first buyback in October 2015.
The decision comes after a precipitous decline in the stock price earlier this month when Facebook warned investors that revenue growth would slow next year.