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The AI spending boom is forcing a rethink on stock buybacks: One Big Investment Idea
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Yahoo Finance - Business Finance, Stock Market, Quotes, News
With the same profit divided across fewer shares, each share represented a larger claim on the business.
When the same profit is divided among fewer shares, earnings per share rises even if the company itself is not earning much more.
Buybacks show how much companies spend.
The total share count shows whether those purchases actually leave fewer shares in investors' hands.
Fidelity estimates buybacks have declined to roughly 31% of earnings as borrowing rises and companies invest in AI infrastructure.