Google parent Alphabet to buyback shares worth $70bn 

Google parent Alphabet declared on Tuesday that its panel of directors approved $70 billion in share repurchases.

If Google spends the whole amount on buybacks, it would mean continuing last year’s rate. Alphabet declared $70 billion in share buybacks in April 2022.

Since then, Google has had to cut prices and lay off workers, noting “a different economic reality” and overhiring.

Alphabet stated it would consider the share price and market situations when deciding when to purchase back its Class A and Class C stocks.

Class A shares are the first issued Google shares that gave voting rights, while Class C shares are more recent ones with no voting rights. There are even super-voting Class B stocks that are not publicly traded.

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Alphabet’s share grew more than 3% in extended trading after the firm reported earnings that exceeded Wall Street expectations.

In 2022, Alphabet bought back more of its share than any other firm except Apple.

Share buybacks have become a sizzling political topic in Washington, D.C. Investors like Warren Buffett enjoy share buybacks because they make existing shares more valuable by lowering the number outstanding. Buffett has called analysts of share buybacks economically “illiterate.”

But several politicians, including President Joe Biden, have sought share repurchases, saying they are a terrible use of company earnings over options like pay raises and that the practice effectively drives share prices. 

A 1% surcharge on buybacks backed by the Biden administration was passed last year.