Big Tech's buybacks hit a 7-year low
Alphabet, Microsoft, Amazon, and Meta have pulled back on stock buybacks, with their combined repurchases hitting their lowest level since 2019.
Instead of rewarding shareholders now, they're pouring money into building out artificial intelligence (AI) infrastructure—think more servers and smarter tech.
Free cash flow forecast
Higher capex on AI infrastructure, rather than reduced buybacks, means these companies have less free cash to play with and their stocks could get bumpier for a while.
Their combined free cash flow is expected to drop 64% over the next four quarters, which could make things a bit unpredictable for anyone holding or eyeing their shares.
AI infrastructure over stock buybacks
Big Tech is all-in on AI.
Amazon hasn't bought back any stock since 2022 and is part of the more-than-$700 billion combined capital expenditures projected for this year (2026).
Alphabet spent roughly $11 billion on buybacks last quarter; Meta's buybacks are just a fraction of what they used to be.
As Bloomberg's Robert Schiffman put it, "I don't think it's because of a lack of financial flexibility, it's just what are the best uses of capital."