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Big Tech’s era of mega buybacks is giving way to an era of mega artificial intelligence spending, as companies put their cash into data centers and technology buildout.

Buybacks Fall to Lowest Level Since 2017

Combined share repurchases by Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG), Amazon.com, Inc. (NASDAQ:AMZN), Microsoft Corp. (NASDAQ:MSFT), Meta Platforms Inc. (NASDAQ:META) and Oracle Corp. (NYSE:ORCL) fell to $4.4 billion in the quarter ended in September, the lowest since 2017, The Kobeissi Letter said on X.

That is down about 90% from a peak of roughly $45.9 billion in late 2021, and the third straight quarter below $5 billion.

“AI spending is coming at the expense of Big Tech buybacks,” the market commentator added.

The era of massive Big Tech stock buybacks is over.

Combined buybacks by Alphabet, $GOOGL, Amazon, $AMZN, Microsoft, $MSFT, Meta, $META, and Oracle, $ORCL, fell to $4.4 billion in Q3 2026, the lowest since Q3 2017.

Share repurchases have dropped -90% since the ~$45.9 billion… pic.twitter.com/9lun4AM3x1

— The Kobeissi Letter (@KobeissiLetter) November 4, 2026

MSFT Is the Lone Big Buyer

Microsoft accounted for all of it. The company cut its buybacks to $4.4 billion in the September quarter from $5.7 billion a year earlier.

Alphabet and Meta have sat out the market all year, a sharp reversal from last year, when the two bought back $66.5 billion of their own shares through the first nine months.

Amazon hasn’t repurchased stock since 2022.

Capex Climbs as Borrowing Rises

Alphabet, Meta, Amazon and Oracle are now spending more on data centers and equipment than their operations bring in, while Microsoft is still generating cash.

Alphabet’s capital spending has more than doubled to $51.36 billion in the third quarter from $24 billion a year earlier, while operating cash flow slipped to $42.29 billion from $48.4 billion. Amazon spent $77.26 billion in the quarter, up from $35.1 billion, and expects about $220 billion of cash capital spending for 2026.

Meta narrowed its 2026 capex outlook to $135 billion to $145 billion.

To cover the gap, the companies are borrowing and selling stock. Alphabet’s long-term debt has nearly tripled to $125.10 billion since the end of 2025, and earlier this month Oracle said it would raise $20 billion in debt and equity.

This comes as more than $2 trillion was wiped from the Nasdaq-100’s value in October as scrutiny of AI spending intensified.

Price Action: Alphabet’s Class A shares closed 3.18% higher on Wednesday at $288.93 and rose 0.49% in extended trading. Its Class C stock was up 3.25% to close at $287.30 and was up 0.44% in after-hours trading.

Benzinga Edge rankings indicate Alphabet’s Class C stock has a Momentum score in the 13th percentile, with a growth score in the 72nd percentile.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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