Magnificent Seven Tech Giants To Propel S&P 500 Buyback: Goldman Sachs Says Repurchases Poised For $1 Trillion By 2025
Portfolio Pulse from Benzinga Neuro
Goldman Sachs predicts S&P 500 companies will increase their share buybacks to $925 billion in 2024, a 13% YoY increase, and exceed $1 trillion in 2025. This surge is driven by the 'Magnificent Seven' tech giants: Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla, which contributed to 26% of S&P 500 buybacks in 2023. Despite a 14% decline in buybacks in 2023 due to various economic factors, expectations of strong earnings from these tech firms are anticipated to boost share repurchases.
March 08, 2024 | 4:43 am
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Apple is among the key tech giants expected to drive a significant increase in S&P 500 share buybacks.
As part of the influential 'Magnificent Seven', Apple's performance is crucial for the buyback surge. Strong earnings from AAPL could lead to more buybacks, potentially lifting its stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Amazon is highlighted as a significant contributor to the projected increase in S&P 500 share buybacks.
Amazon's inclusion in the 'Magnificent Seven' underlines its impact on the market. Expected strong earnings could lead to increased buybacks, positively affecting AMZN's stock.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Alphabet is part of the 'Magnificent Seven' tech giants driving the anticipated surge in S&P 500 share buybacks.
As one of the 'Magnificent Seven', Alphabet's performance and contribution to the S&P 500 buybacks are critical. Strong earnings could enhance shareholder value and potentially boost GOOGL's stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Meta Platforms is actively participating in the buyback trend, with a $50 billion increase in its share buyback program.
Meta Platforms' significant increase in its share buyback program reflects strong financial health and commitment to shareholder value, likely having a positive impact on META's stock price.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 95
POSITIVE IMPACT
Microsoft is identified as a major player in the expected rise in S&P 500 share buybacks.
Microsoft's role in the 'Magnificent Seven' emphasizes its influence on the market. Anticipated strong earnings could lead to increased buybacks, positively impacting MSFT's stock.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Nvidia is part of the tech giants expected to significantly contribute to the growth in S&P 500 share buybacks.
Nvidia's inclusion in the 'Magnificent Seven' highlights its market impact. Strong earnings could lead to more buybacks, positively affecting NVDA's stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Tesla is among the 'Magnificent Seven' tech giants driving the anticipated increase in S&P 500 share buybacks.
Tesla's role as one of the 'Magnificent Seven' underlines its importance in the buyback trend. Expected strong earnings could lead to increased buybacks, positively impacting TSLA's stock.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90