Did American companies buy their own dip?
American companies are pulling out their wallets and breaking records in the pace of their own stock repurchases – but in a way no one expected...
According to the data we found, as of May 2, 2025, US companies have announced buybacks at the highest rate in history – over $600 billion, barely five months into the year.
And this is not a new trend. Since 2021, buybacks have only been getting stronger, despite interest rates, inflation, fears of a weak market, elections, and much more...
So what does this actually mean? Giant companies like Apple, Microsoft, Goldman Sachs, and others are not just distributing dividends, they are simply pouring cash into their own stocks.
Why?
Because they believe they are cheap.
And they are buying their own dip!
In fact, a significant part of what drives the market is buybacks, and the recent rally? It too is significantly driven by the aggressive purchases of companies that took the opportunity to buy their own stocks cheaply.