Alphabet’s board of directors authorized $70 billion in share repurchases on Tuesday, the company announced.
If Google winds up spending the entire amount on buybacks, it would be a continuation of the pace set last year. In April 2022, Alphabet disclosed the repurchase of $70 billion in shares.
Since then, Google has had to reduce costs and lay off employees, citing “a different economic reality” and overhiring.
Alphabet stated that it would consider the stock price and market conditions when determining when to repurchase its Class A and Class C shares.
Alphabet repurchased $70 billion in April 2022.
Class A shares are the original Google shares that carried voting rights, while Class C shares are a contemporary class that lacks voting rights. In addition, there are non-publicly traded Class B shares with supervoting rights.
After the company disclosed revenue that exceeded Wall Street’s expectations, Alphabet stock rose by more than 3 percent in extended trading.
Apple was the only company that repurchased more of its own stock than Alphabet in 2022.
Repurchases of shares have become a heated topic in Washington, D.C. politics. By diminishing the number of outstanding shares, share repurchases increase the value of existing shares, which appeals to investors such as Warren Buffett. Buffett has dubbed critics of share buybacks “economically illiterate.”
Some politicians, including President Joe Biden, have criticized share repurchases, arguing that they are an inefficient use of company profits compared to alternatives such as pay raises and that the practice manipulates share prices. Last year, the Biden administration supported the passage of a 1% tax on buybacks.
