Facebook is doing a $6 billion stock buyback (FB)

Facebook is buying back up to $6 billion of its stock from shareholders, the company announced in a SECfiling on Friday.Facebook said the repurchase program will go into effect in the first quarter of 2017 and does not have a fixed expiration date. The company said the buybacks will be consistent with Facebooks "capital allocation strategy of prioritizing investment to grow the business over the long term."Shares in Facebook roseover 1% on the news in after hours trading.Facebook also announced that its chief accounting officer, Jas Athwal, is retiring after 9 years atthe companyin a separate filing. His last day will be Feburary 27.Its uncommon for tech companies like Facebook to return cash to shareholders through buybacks or dividends, asthey generallypreferto spend their cash on growth opportunities. This is Facebook's first ever buyback program.Facebook has roughly $26 billion in cash and short term securities on its balance sheet. Its stock sunk more than 8% earlier this month after the company warned investors that revenue growth rates will decline in the coming quarters,while 2017 will be an "aggressive investment year."SEE ALSO:Facebook's forecast of a slowdown isn't a reason to panic, according to Wall StreetJoin the conversation about this story
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