How share buybacks have led to risky market overvaluation

Share buybacks were responsible for 40% of SP500 returns in 2021 and these returns were generated without necessarily improving underlying business fundamentals. Investors must understand buybacks and be cautious of how companies use them to boost their share price and EPS. Tommaso Simone explores both sides of the debate concerning popular business news and whether Executive bonus packages should be so fixated on earnings.

Green Means Go

What impact do fears of climate change have on the world of finance and economics? Anushka proposes that the “stock market is nothing if not constantly waiting for the pin to drop”. Yet in spite of this, she believes that “warnings of a green bubble are largely founded on a fear of growing demand, triggered by a history of repeated burns, and while there is substantial evidence to corroborate this claim, a crash is not necessarily imminent”.

Deliveroo’s IPO: rash or sensible?

While the COVID-19 pandemic has been detrimental for many businesses, the online food delivery market has flourished and Deliveroo has managed to become profitable for the first time since it was founded. What more, its upcoming IPO presents opportunities for further growth, expansion and stability. However, Jaahnavi places doubt on such success, questioning whether the present stock market volatility could hinder the chances of a successful IPO for Deliveroo and suggesting it may be wise to delay the listing until the market stabilises.