Facebook plans to repurchase US$9 billion more of its shares

The Facebook Inc. application icon is displayed on an Apple Inc. iPhone in an arranged photograph. (Bloomberg pic)

SAN FRANCISCO: Facebook Inc. said it plans to buy back US$9 billion more of its shares, in a bid to boost confidence in the company after a recent stock slump.

Facebook shares have fallen almost 40% since the social-media giant said in July that it expects growth to slow and profit margins to narrow in coming years. Its main social network is reaching a saturation point, so it needs to explore new types of business models. The company has also been facing scandals over its handling of misinformation and user data.

Facebook said in a regulatory filing that its board had previously authorised share repurchases of up to US$15 billion as part of a program started in 2017. The US$9 billion buy back announced on Friday is in addition to those prior authorisations, the company said.

Facebook shares rose 1.4% in extending trading. Earlier on Friday, the stock closed at US$137.42 in New York.