3 Stocks Plan +$130B in Buybacks: Why Markets Wanted Even More

Group 1: Overview of Share Buyback Programs - Several influential companies in the technology and financial sectors have announced massive share repurchase programs totaling over $130 billion, indicating confidence in their equity despite mixed macroeconomic signals [1][3] - Visa announced a $30 billion buyback program, a significant increase from its previous $25 billion plan, reflecting strong confidence in long-term growth [4][5] - Apple revealed a $100 billion buyback authorization, one of the largest in history, but some investors were underwhelmed as it was $10 billion smaller than its previous program [8][9] Group 2: Visa's Buyback Details - Visa's new buyback program brings its total repurchase capacity to nearly $35 billion, equating to about 5.2% of its market capitalization, which is aggressive for a company of its size [7] - The buyback reflects strong cash generation and a belief that shares are attractively priced in the current environment [7] Group 3: Apple's Buyback Insights - Apple's $100 billion buyback represents 3.1% of its market capitalization, lower than the 4.1% from its previous $110 billion program [11] - Despite the disappointment, historical data shows that a smaller buyback does not preclude strong stock performance, as seen in 2019 [12][13] - Apple also announced a moderate 4% increase to its quarterly dividend alongside the buyback [14] Group 4: Arista Networks' Buyback Activity - Arista Networks announced a $1.5 billion share buyback program, with an additional $34 million from its previous authorization, totaling around 1.4% of its market capitalization [15] - The company spent $887 million on buybacks from the beginning of 2025 through April, indicating management's belief that its stock is significantly undervalued [16][17]