These three Magnificent seven stocks spent the most money on buybacks of all S&P 500 companies, returning large amounts of capital to shareholders. I’ll detail which of these big firms led the way in share repurchases and also provide insight into whether they’ll be able to do so again in 2025. These companies can still increase the amount of stock repurchased in 2024.
Apple: The world’s largest company and the world’s largest purchase
Apple today
01/8/2025 to 04:00 PM Eastern
- 52-week range
- $164.07
▼
$260.10
- Dividend yield
- 0.41%
- P/E ratio
- 39.92
- Price target
- $237.64
Tech giants apple NASDAQ: AAPL spent the most on stock buybacks in 2024. The company has already reported results for its full fiscal year 2024, recording just over $100 billion spent on share repurchases. However, in calendar year 2024, the company reports only $78 billion will be spent on buybacks. The biggest of those came in Q2, when the company spent nearly $29 billion. This is the largest buyback spending in one quarter in Apple’s history. The company’s level of buyback spending over the past twelve months now sits at its highest level ever. It has recovered significantly since the mid-2023 lows.
So, can Apple do it again in 2025? Back in March, the company Official $110 billion In return power. Since then, Apple has used almost half of that right, just over $54 billion. Apple’s board of directors must authorize a new buyback program if the company wants to maintain this level of spending. It’s certainly not something they’ve had a problem with in the past. The company is sitting on $65 billion in cash and short-term investments. It also brought in $108 billion in free cash flow over the past 12 months. As long as the machine keeps ticking, Apple can continue with the same level of buybacks.
Alphabet: A strong history of heavy acquisitions and new rights
Alphabet today
01/8/2025 to 04:00 PM Eastern
- 52-week range
- $130.66
▼
$201.42
- Dividend yield
- 0.41%
- P/E ratio
- 25.72
- Price target
- $206.82
Next is Google’s parent company, the alphabet NASDAQ: GOOGL. In 2024, the firm spent just under $47 billion on share buybacks. The company’s buyback level has been increasing since late 2017. However, the growth rate of its buyback spending has slowed dramatically. In the three years ending September 2021, trailing-12-month buyback spending had a compound annual growth rate (CAGR) of 74%. In the three years to September 2021, the CAGR has slowed to just 12%.
Alphabet’s latest buyback authorization The company’s Q1 earnings report. The figure came to $70 billion; The company also announced its first dividend. If Alphabet’s Q4 buyback spending continues at its 2024 pace, it will exercise about $63 billion of this right by the end of the year. Thus, the company will also need to authorize another buyback program. The company authorized a $70 billion buyback program in Q1 of 2022, 2023, and 2024. The company’s cash and short-term investments, as well as free cash flow, are slightly below their average over the past three years. This may make it unlikely that the firm will announce a buyback right above $70 billion. However, $70 billion is still possible and needed.
Meta: The historical cash and cash flow for the 2025 buyback is well set
Meta platform today
01/8/2025 to 04:00 PM Eastern
- 52-week range
- $355.36
▼
$638.40
- Dividend yield
- 0.33%
- P/E ratio
- 28.77
- Price target
- $645.80
is the last Meta platform NASDAQ: META. In 2024, the company spent $40 billion on share buybacks. Unlike the other two firms, Meta’s share buyback spending is now below its peak level. Over the past 12 months, buyback spending has fallen nearly 13% from levels reached in early 2022. However, it has largely recovered from its low in 2023. Two things that sit at their all-time highs for the meta are Generate cash and free cash flow. As of Q3, the firm was sitting on about $71 billion in cash and short-term investments. It also generated more than $52 billion in free cash flow over the past 12 months.
Meta last reported A Buyback rights of $50 billion In Q1 2024. Before that, it still had about $31 billion left in buyback authorizations through 2023. If it continues at a similar buyback pace in Q4, the company could still have more than $25 billion in buyback rights available. Also, given its historical success, the company may authorize more buybacks in 2025.
Overall, assuming overall economy strength in 2025, these firms are likely to continue their strong buyback spending.
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