This Alphabet Initiative Will Reward Shareholders Massively Over the Long Run
Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) is one of the world's most dominant companies. Its two largest divisions, the Google search engine and YouTube, have a market share of 86% and 76% in their respective industries. As a result, advertisers flock to these platforms because they know Google and YouTube will provide a fantastic return on ad dollars spent.
These divisions also provide Alphabet with massive cash flows for an initiative that benefits shareholders: stock buybacks. By repurchasing shares, Alphabet makes each remaining share more valuable as it now accounts for a larger piece of the overall company. Over time, this can provide huge returns for shareholders that hold on to the stock.
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Source Fool.com
