Qualcomm Launches $15B Buyback Plan; Stocks Fall Sharply on Wall Street

Corporate share buybacks are back in vogue on Wall Street.
4:07 | 03/10/15

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Transcript for Qualcomm Launches $15B Buyback Plan; Stocks Fall Sharply on Wall Street
Okay. It's Tuesday march 10 the markets in your program and make this morning fifteen billion that. This huge amount that chipmaker Qualcomm plans to spend buying back its own stock. And it's coming on the heels of other big public companies anymore bind their own shares spent on other business investments and expenses. It when I'm Dan where in New York. So here with details on this and this trends has been happening right now dale Douglas get real from the Washington Post Daniel thanks for being with us today. Thanks for having me the solicit Qualcomm is the latest coming to buy back its own shares what's going on what drove this move. Usually easy companies taking these at this because they believe that the market is under valuing their shares. And as a result want to make sure that there investors feel comfortable in our C receiving decent returns so Bob way back these stocks up the dividends that they return to investors. And start to try to at least change of perception their company within the markets with these kinds of moves. But where is the company then I guess and it and the overall markets will be in next Sevilla from like have the Wall Street picture of things that actually in the actual producing what is actually intended to do. What they're doing okay except for their coming off of a bit of a controversy with some of its manufacturing in China and so I think they're trying to. Reverse some of the declines that they suffered as a result of those problems. And so were it we're seeing Qualcomm trying to figure out a way to me sure that they are. The value by their investors wolf market coming off of this I'm controversy about the man traction in China. And moving ahead with a lot of its plans keep in mind is the second time that the company has done one of these buybacks. And typically if you see several of these what's the buybacks. It's either a reflection of where the company is in the market the state of the economy or just a kind of decline of overall value of that firm's so. You want a nation they're not doing this too often but a couple of times isn't as much of a concern at this point police. Look at them what are your thoughts and in General Motors announcing a buyback as well because this time though it wasn't us with so much into the company. But out of a lot of pressure from activist investor Friday. Yes on this a little different here and General Motors. Has of course been. Marred by all sorts of controversy about its recalls over the last year. But isn't the company also is is dealing with this activist investor leading the way. For a lot of hedge funds who have been pretty upset with the firm for sitting on piles of cash that they feel should be returned to investors. Constantly you know when the company has that kind of money you wanna see them invested into some kind of new model improve their systems and they think apple with GM. Investors and taking quite a hit from of the rounds of buybacks and what it's done to the company shares. So they want some of that money it's it back for themselves. In order to keep them holding on to the firm so. It's if there is slightly different angle as far as the buyback is concerned but the overall and gains in same which is keeping investors happy. And we'll take a look at the broader picture of the markets in the dollar searching. Stocks sharply lower though this morning know what's going on. You know the quantitative easing that's happening in the European Central Bank C announces earlier. Yesterday and sent the market's gone down some I think people are certain to really worry about. The global economy as well as worrying about the potential of seeing increases. In interest rates now the Fed has been kind of and hinting towards this for some time in the days and dean in Washington trying to figure out when it's gonna happen. But is pretty certain at this point that we're going to see some kinds of a riot a rise in interest rates in the coming year especially is unemployment. Is is down towards 5% which is one of the indicators that fits that it was looking for dealers start raising rates. All right well we'll keep with that was care reform Washington posting up thanks so much have a good day thank you think can't. Thank you you of course you have less headlines right here on abcnews.com. And you don't like the big number and dance company.

This transcript has been automatically generated and may not be 100% accurate.

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