Facebook shareholders enjoyed a healthy stock price bump on Monday — something that stands out considering the social network’s rocky 2018 — after the company announced it would buy back $9 billion worth of shares.
The buyback was approved by the company’s board last Thursday and disclosed in a filing with the Securities and Exchange Commission on Friday afternoon. Wall Street responded positively on Monday, with Facebook shares increasing 3.2 percent to hit $141.85 per share.
The $9 billion buyback adds to an aggressive stock repurchase plan Facebook already had in place, with the company’s board approving a $15 billion buyback last year. The latest repurchase plan does not have an expiration date, according to the company’s SEC filing.
Despite Monday’s rally, it’s been a trying year for Facebook and its shareholders. Company shares are down 22 percent since the beginning of 2018 amid a series of highly-publicized scandals — chief among them being the Cambridge Analytica data leak in March, which exposed the profile information of up to 87 million unwitting users to the political data firm.
Facebook shares briefly rebounded in May, but the company’s struggle to grow its massive user base of 2.2 billion people, coupled with underwhelming revenue growth, has allowed the company to get pushed down during the recent tech industry swoon.