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Pro Analysis

Breakingviews: Facebook follows blue-chip playbook of buybacks to make up for stumbles

Mark Zuckerberg, chief executive officer of Facebook Inc.
David Paul Morris | Bloomberg | Getty Images
Mark Zuckerberg, chief executive officer of Facebook Inc.

Facebook is employing a decidedly old-school tactic to a series of disruptive missteps. The $340 billion social network is launching a $6 billion stock buyback, its first ever. Meanwhile it's wrestling with more advertising-metric flubs, a fake-news problem and slowing revenue growth. Money isn't a problem for Facebook, though the timing is curious.

Shares of Mark Zuckerberg's dorm-room creation are down about 9 percent over the month, mostly after Facebook warned earlier that stellar ad revenue growth, which makes up the bulk of its top line, will not continue at its blistering pace. Even so, the company is not trading too far from its all-time high of around $130, which it hit in October.