The Financial Post reports in its Thursday, April 24, edition that many investors have shied away from tech giants amid this year's equity rout, but these companies are likely to continue their stock buybacks, providing some support for their stocks. A Bloomberg dispatch to the Post reports that although firms might consider conserving cash due to economic uncertainty from tariff policies, buybacks remain appealing since companies like Microsoft, Amazon and Apple hold over $500-billion in cash (all figures U.S.).
Bloomberg's Robert Schiffman says: "My sense is we're going to see probably little to no slowdown in buybacks. You don't need to hoard cash if you have $30-, $50-, $100-billion in cash on your books." The trajectory signals will begin with Alphabet's earnings report on Thursday, followed by Apple on May 1. Both companies often announce buyback plans during the first quarter earnings season. Last year, Alphabet authorized $70-billion for share repurchases and initiated a dividend, while Apple set aside $110-billion for buybacks. The threats from tariffs -- to economic growth and profits -- have driven investors out of the technology stocks that led U.S. markets higher for most of the past two years.
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