Stock buybacks are expected to fall somewhat out of favor this year as companies grapple with the state of the economy and its impact on earnings. But some big names have defied the trend. Buybacks of stocks within the S & P 500 are down 21% in the first quarter of 2023 compared with the same period a year ago, said Goldman Sachs' Ryan Hammond. The slide comes as the biggest corporations in America tighten their belts to contend with economic contraction and higher interest rates.
mountain Meta and Microsoft Facebook-parent Meta increased its share repurchase authorization to $40 billion. By comparison, the company bought back about $28 billion in shares last year. Microsoft, meanwhile, increased its buyback by just 1% from the prior quarter, according to Hammond. Both announcements come as technology companies have tried to curb costs through measures like layoffs amid concerns over the broader economy and cooling advertising spending.