Why Shares of Rakuten Are Surging

Why Shares of Rakuten Are Surging

Assessment

Interactive Video

Business

University

Hard

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The video discusses a company's $881 million stock buyback plan, contrasting it with a previous stock sale. The stock price has fluctuated, and the buyback is seen as a strategic move to buy low after selling high. The discussion includes the implications for long-term investors and the company's growth prospects, highlighting a lack of innovation despite having significant cash reserves.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What financial strategy did the company employ by buying back shares?

Buying and holding

Selling high and buying low

Short selling

Selling low and buying high

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How did the stock price react to the buyback announcement?

It doubled

It increased by 10%

It remained stable

It decreased by 10%

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What concern might long-term investors have regarding the company's stock price?

It might have a set ceiling

It might be overvalued

It might be undervalued

It might be too volatile

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the main criticisms of the company's current strategy?

Lack of focus on stock price

Excessive innovation

Lack of significant innovation

Overexpansion into new markets

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the company's cash position as mentioned in the video?

$5 billion

$3 billion

$1 billion

$10 billion