Intel’s $10 Billion Buyback Won’t Solve Its Biggest Problems
Intel's (NASDAQ: INTC) stock recently jumped after the tech giant announced a $10 billion accelerated buyback plan, ending its five-month suspension of buybacks throughout the COVID-19 pandemic.
Intel previously launched a $20 billion buyback plan last October, and had already repurchased $7.6 billion in shares prior to the suspension. The new accelerated buybacks represent a continuation of that earlier program.
Intel spent $10 billion on Aug. 21 on the buyback, initially receiving 166 million shares with additional shares likely based on the weighted average share price over a set period. Intel's aggressive move suggests its stock is undervalued after its post-earnings plunge in late July, but a big buyback won't solve its biggest problems.
Source Fool.com
