So I was thinking about where big tech stock prices can go from here considering 7 stocks account for a significant portion of the US market already. It’s hard to comprehend a company that is already 7% of the total market, consistently beating the market over the long run.
Then it hit me; With share buy backs, assuming these companies are buying back more shares than they’re paying out in comp every year (which it looks like they are), the stock prices of the major big tech companies should increase by a higher amount than their market caps do.
A quick Google search reveals that AAPLs outstanding shares decreased 2.9% in 2022 and around similar amount in 2021. This basically a “guaranteed” 2% of annual growth on the existing shares not taking into account other factors that affect stock price?
Is there anywhere I can see a graph of a company’s market cap like you can do with stock price? I’d like to compare share price growth to market cap growth.
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