These three Magnificent Seven stocks spent the most money buying back all the companies in the S&P 500 index, returning large amounts of capital to shareholders. I’ll detail which of these huge firms have led the way in stock buybacks, and give insight into whether they’ll be able to do so again in 2025. These companies may also further increase the number of shares they repurchase in 2024.
Apple: the world’s largest company and the world’s largest buybacks
Apple today
As of 01/08/2025 16:00 Eastern
- 52 week range
- $164.07
▼
$260.10
- Dividend yield
- 0.41%
- P/E ratio
- 39.92
- Target price
- $239.85
Tech giant Apple NASDAQ:AAPL spent the most on share buybacks in 2024. The company has already reported full results for fiscal 2024, recording spending just over $100 billion on share repurchases. However, in calendar year 2024, the company reported spending just under $78 billion on buybacks. The biggest one came in the second quarter, when the company spent nearly $29 billion. This marked the largest buyback expense in a single quarter in Apple’s history. The company’s level of buyback spending over the past twelve months is now at its highest level ever. It has recovered significantly from its fall in mid-2023.
So, can Apple do it again in 2025? Back in March, the company authorized $110 billion in share repurchases. Since then, Apple has used about half of the permit, worth just over $54 billion. Apple’s board of directors must approve a new buyback program if the company wants to maintain this level of spending. It’s definitely not something they’ve had problems with in the past. The company has cash and short-term investments of $65 billion. It also generated $108 billion in free cash flow over the last 12 months. As long as the machine continues to work, Apple can maintain the same level of buybacks.
Alphabet: Massive Buybacks and Strong History of New Entitlements
Alphabet today
As of 01/08/2025 16:00 Eastern
- 52 week range
- $130.66
▼
$201.42
- Dividend yield
- 0.41%
- P/E ratio
- 25.72
- Target price
- $206.82
Next up is Google’s parent company Alphabet. NASDAQ: GOOGLE. In 2024, the company spent just under $47 billion on share buybacks. The company’s share repurchase rate has been increasing since the end of 2017. However, the rate of growth in ransom costs has slowed sharply. For the three years ending September 2021, the compound annual growth rate (CAGR) for buyback expenses over the trailing 12 months was 74%. In the three years since September 2021, the average annual growth rate has slowed to just 12%.
Alphabet’s latest buyback approval appeared in the company’s first-quarter earnings report. This figure was $70 billion; the company also announced its first dividend. If Alphabet’s buyback spending in the fourth quarter continues at the same pace as in 2024, the company will have spent about $63 billion of that amount by the end of the year. Thus, the company will also need to authorize another buyback program. The company has authorized a $70 billion share repurchase program in the first quarter of 2022, 2023 and 2024. The company’s cash and short-term investments and free cash flow are moderately below the average of the last three years. That could make it unlikely that the firm would announce authorization for a buyback worth more than $70 billion. However, $70 billion is still feasible and sufficient.
Meta: Historical Cash and Cash Flow Set Up Great for 2025 Buyout
Metaplatforms today
As of 01/08/2025 16:00 Eastern
- 52 week range
- $355.36
▼
$638.40
- Dividend yield
- 0.33%
- P/E ratio
- 28.77
- Target price
- $645.80
The last thing is metaplatforms. NASDAQ: META. In 2024, the company spent a whopping $40 billion on stock buybacks. Unlike the other two companies, Meta’s share buyback costs are now well below their peak levels. Over the past 12 months, buyback costs are down about 13% from the level they reached at the start of 2022. However, they have risen sharply from the 2023 lows. The two things that are really at their all-time highs for Meta are cash flow generation and free cash flow. As of the third quarter, the company had nearly $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 authorizing a $50 billion buyback in the first quarter of 2024. Before that, it still had about $31 billion in buyback authorization from 2023. There is permission for repurchase. Additionally, due to its historical success, the company may allow many more buybacks in 2025.
Overall, assuming the overall economy continues to be strong in 2025, these companies will likely be able to continue their high buyback spending.
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