Big Tech Buys Back Fewest Shares in 15 Years
Large technology companies are returning the smallest share of their cash to shareholders in 15 years. Share buybacks have long supported tech share prices. With fewer buybacks, investors now depend more on heavy AI spending producing enough profit growth to justify high valuations.
Quick glossaryshare buybacks, valuations
- share buybacks
- When a company uses its own cash to buy back its shares from investors, leaving fewer shares in circulation.
- valuations
- The price the market puts on a company, usually based on what it earns now or is expected to earn later.
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