Big Tech’s Capital Return Opportunity 4/22/24
TechCheck
CNBC
4.5 • 66 Ratings
🗓️ 22 April 2024
⏱️ 6 minutes
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| 0:00.0 | It is a mega week for mega cap earnings ahead. |
| 0:02.9 | Meta is set to report on Wednesday, Alphabet Microsoft on Thursday. |
| 0:06.6 | Our dear gerbosa is taking a look at what to expect all week long. |
| 0:09.4 | Hey, D. |
| 0:10.4 | Hey Carl, good morning. |
| 0:11.4 | So something for investors to consider out of those earnings |
| 0:14.4 | could we see them return more cash than ever to shareholders like a dividend or |
| 0:18.3 | buyback boost could that underpin the results. Meta-Remember surprised the street |
| 0:22.2 | in February of this year by issuing |
| 0:23.7 | its first ever dividend. Tech and growth companies don't typically return cash to |
| 0:28.0 | shareholders. They reinvest it back into the business. They look for growth, but that could be changing. After that |
| 0:34.0 | meta-dividend we talked about whether Google could follow suit and indeed a few |
| 0:38.0 | reason analyst notes they raised that possibility this quarter, but perhaps the |
| 0:41.7 | most compelling reason mega caps could institute |
| 0:44.5 | programs or beep up existing ones if they wanted to is their free cash flow, |
| 0:49.2 | especially if M&A remains tough in this regulatory environment. |
| 0:53.0 | They've got to do something with all that cash. |
| 0:54.7 | Across the board, that metric has increased for the six mega caps, |
| 0:58.2 | and the biggest jumps have been seen at NVIDIA and Amazon. |
| 1:02.4 | Amazon actually had negative free cash flow at the end of |
| 1:05.2 | 2021. Now under Jeff Bezos it was hard to imagine Amazon issuing a dividend or |
| 1:09.7 | buyback but Andy Jassie seems to be more Wall Street friendly he gets on the |
... |
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