Tech Giants Are About To Give A Key Signal On Buybacks Tech Giants Are About To Give A Key Signal On Buybacks By Jessica Menton, Bloomberg Markets Live reporter and analyst Investors are bracing for a crucial stretch that will signal whether Corporate America is starting to stockpile cash for insurance against a cooling economy rather than using it to bolster shareholder returns. This week brings earnings releases from two key contributors to share buybacks in recent quarters -- Big Tech in particular, but also energy titans like Chevron Corp. and Exxon Mobil Corp. Investors were put on notice this month after JPMorgan Chase Co., Citigroup Inc. and Discover Financial Services said they’re pausing the repurchases because of either regulatory issues or ongoing probes. The importance of tech for this discussion is hard to exaggerate. Apple, Alphabet, Meta Platforms and Microsoft accounted for 63% of the 10 biggest SP 500 Index share repurchases in the first quarter, data compiled by Bloomberg show. Any hint they’re stepping back will raise concern that US companies are preparing for a recession, and also weaken a pillar of support for battered stocks after firms poured historic amounts of cash into buybacks last year. “To the degree that companies either reduce or don’t announce additional share buybacks, that may remove a key source of demand for US equity markets the next several months,” said Michael Sheldon, chief investment officer at RDM Financial Group-Hightower.