It's a more tax efficient way to return value to shareholders without forcing shareholders to realize taxes immediately. Shareholders can choose to sell on their own timeline, thereby choosing when to realize any capital gains taxed paid.
A secondary reason would be lack of better options to spend the money on (no R&D investment opportunities).
Compared to other sectors, tech is more efficient with its revenue, so it leaves more money behind, which is available to use for buybacks.
A secondary reason would be lack of better options to spend the money on (no R&D investment opportunities).
Compared to other sectors, tech is more efficient with its revenue, so it leaves more money behind, which is available to use for buybacks.