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Buybacks Are the Best Bet in a Volatile Market. 5 Stocks to Consider.

Julian WestFriday, May 2, 2025 10:32 pm ET

42min read

In a market riddled with geopolitical tensions, interest rate uncertainty, and economic headwinds, investors often seek stability. Share buybacks—where companies repurchase their own stock—are emerging as a critical strategy to navigate volatility. By reducing shares outstanding, buybacks boost earnings per share (EPS), support stock prices, and signal confidence in a company’s financial health. With Goldman Sachs projecting over $1 trillion in S&P 500 buybacks for 2025, now is the time to focus on companies aggressively returning capital to shareholders. Here are five standout picks.

1. Apple Inc. (AAPL): The Buyback Titan

Apple has long been a leader in capital returns, and 2025 is no exception. The tech giant spent $23.6 billion on buybacks in Q1 2025, maintaining its pace of nearly $90 billion annually. This commitment has reduced Apple’s share count by ~2.5% in 2024, and it aims for a similar 3–4% reduction in 2025.

Apple’s buybacks are underpinned by its $250 billion cash reserves and consistent free cash flow. Even as the company invests in AI and services, its disciplined capital allocation ensures shareholders benefit during market turbulence.

2. Alphabet Inc. (GOOGL): Cash Flow Machine

Alphabet executed a record $61.8 billion in buybacks in 2024 and boosted its authorization to $70 billion in 2024, with ongoing repurchases expected in 2025. The company’s dominance in digital advertising and cloud computing fuels ~$100 billion in annual free cash flow, enabling it to sustain buybacks while funding ambitious projects like AI and autonomous vehicles.

Alphabet’s buybacks—executed at a rate of $250 million per trading day—are a testament to its confidence in long-term value, making it a resilient bet in volatile markets.

3. Meta Platforms (META): Ramping Up Share Repurchases

Meta paused buybacks in late 2024 but plans to resume aggressively in 2025. The company boosted its buyback capacity to $80 billion (over 10% of its market cap) and aims to retire up to 10% of shares over the next few years. This aligns with its shift toward profitability after years of growth investments.

With $20 billion in operating cash flow in Q1 2025 and a new dividend, Meta’s dual approach of buybacks and dividends positions it to weather market swings while capitalizing on AI-driven opportunities.

4. PayPal Holdings (PYPL): Pivoting to Shareholder Returns

PayPal’s $15 billion buyback program announced in February 2025 marks a strategic shift. The company plans to spend $6 billion on repurchases this year, potentially shrinking its share count by ~8%. This move reflects PayPal’s focus on profitability after reducing acquisition spending and boosting free cash flow by 40% year-over-year.

With a valuation near its 52-week low, PayPal’s buybacks could catalyze a rebound, making it a compelling pick for investors seeking undervalued tech stocks.

5. Booking Holdings (BKNG): Betting on Travel Recovery

Booking Holdings, parent of Booking.com and OpenTable, approved a $20 billion buyback in January 2025—the largest in its history. This signals confidence in the post-pandemic travel rebound, as the company benefits from rising global tourism and corporate travel demand.

With $3.5 billion in cash and a lean cost structure, Booking’s buybacks could amplify earnings growth, offering downside protection in volatile markets while capitalizing on a secular tailwind.

Conclusion: Buybacks as a Volatility Hedge

In 2025, buybacks are more than just a financial tool—they’re a defensive strategy. Companies like Apple, Alphabet, Meta, PayPal, and Booking Holdings are using buybacks to offset macro risks, stabilize valuations, and reward shareholders. With Goldman Sachs forecasting > $1 trillion in S&P 500 buybacks this year, these firms are well-positioned to outperform in choppy markets.

Consider these facts:
- Apple reduced its share count by 2.5% in 2024 via buybacks.
- Alphabet’s $70 billion buyback authorization is supported by $100B+ in annual free cash flow.
- Meta’s $80B buyback capacity represents 10% of its market cap, a bold commitment to shareholder value.

While critics argue buybacks can divert funds from innovation, the data shows these companies are balancing growth and returns. In a volatile market, their capital discipline and financial strength make them the best bet for 2025.

Invest wisely—focus on buybacks.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.