Ticker Reports for May 5^th

3 Tech Leaders Announce Buybacks Totaling $85 Billion

Markets have become especially accustomed to tech buybacks in recent years. According to S&P Dow Jones Indices, companies in the S&P 500 tech sector spent a whopping $253 billion on buybacks in 2024.

This represents by far the highest level of buyback spending by any sector, accounting for nearly 27% of the total. Following suit with the tech sector’s buyback dominance, three huge tech names have announced large increases to their share buyback programs.

Together, these buyback programs equal $85 billion. For reference, that is about the same size as HCA Healthcare (NYSE: HCA), the largest for-profit hospital operator in the United States. Below are the details. Unless otherwise indicated, all data and metrics use information as of the May 2 close.

KLA: Chip Company Announces Big Buybacks and Dividend Boost

First up is KLA (NASDAQ: KLAC). This company may not have the same name recognition as the other two on this list, but semiconductor investors know it well. KLA is one of the world’s most important players in the semiconductor manufacturing equipment industry.

Industry experts recognize KLA as one of the leaders in chip inspection and metrology equipment. Inspection equipment ensures that fabricators make semiconductors without defects, and metrology equipment helps properly measure semiconductors’ microscopic features.

KLA recently announced a $5 billion increase to its share buyback authorization. Now, the company has just under $5.5 billion in share buyback capacity. That is a substantial amount, equal to nearly 6% of the company’s total market capitalization. This gives the firm the ability to decrease its outstanding shares notably, providing a tailwind to earnings per share (EPS). KLA also announced a significant increase to its quarterly dividend of almost 12%.

The company has not officially announced the dates for this dividend. However, the next record date is usually in mid-May, and the next payable date is usually on June 1. The stock has an indicated dividend yield of around 1.1%.

Dell’s Buyback Capacity Is Huge, But How Fast Will The Company Use It?

Next is Dell Technologies (NYSE: DELL). The company, which is active in consumer electronics and enterprise servers, announced a $10 billion increase to its share repurchase authorization. The company did not state its total capacity now, but this buyback authorization is very large for Dell.

It is equal to an enormous 15% of the company’s $66 billion market cap. Over the past three fiscal years, the company has spent just under $9 billion on buybacks.

It will be interesting to see if the firm sticks to this buyback spending pace or accelerates it due to the market downturn. This could provide a sign of how confident the company feels in the stock’s appreciation.

Dell also announced a substantial 18% increase to its quarterly dividend, now just under $0.53 per share. While the latest payout has already been made, investors can still capture future dividends, with the stock currently yielding around 2.2%.

GOOGL: Creates Solid Buyback Capacity, Dividend Increase Is the Cherry on Top

Last up is the head honcho of this group, Alphabet (NASDAQ: GOOGL). This big tech name, and one of the top five largest stocks in the world, announced a $70 billion share buyback program. The company also didn’t say how long it will take them to use this capacity, but it’s safe to assume that it will make fairly quick work of it.

Over the last 12 months, Alphabet spent nearly $62 billion on buybacks. This buyback capacity is certainly worth noting, but it isn’t crazy for a company worth around $2 trillion. It represents about 3.5% of the company’s market cap, allowing it to give its EPS a moderate tailwind.

Alphabet also announced a dividend increase, like the other two firms on this list. However, it is far less substantial at just 5%. The company’s next $0.21 quarterly dividend will be payable on June 16 to shareholders of record on June 9. This gives the company an indicated dividend yield of just over 0.5%. Although small, it aligns with the other names in the Magnificent Seven, none of which have a yield over 1%.

All in all, it’s great to see tech companies not only using big-time buybacks to return capital, but also boosting dividends. Both provide important avenues through which companies can support shareholders and the returns they hope to receive. In times of uncertainty like now, doing so can be as valuable as ever.

3 Stocks to Watch as Bitcoin Nears $100k Again

The world has gone quiet on cryptocurrency lately as the bulk of attention centers on the potential economic impacts of the trade tariffs rolled out by President Trump. However, just like the stock market, the cryptocurrency asset class has become both correlated and forward-looking, with the outlook standing for the world today, something investors can see in the near lockstep price action between Bitcoin and the S&P 500 index.

Recently, in its latest run higher from the tariff scare dips, Bitcoin and the S&P 500 have attempted to reach back to their all-time high prices, if not try to get to brand new highs this time. With this in mind, investors can look for opportunities awaiting new capital in the lateral plays of the cryptocurrency world, as investing in Bitcoinitself can often prove too volatile a ride.

Just like gold’s price influences the bottom-line profits of gold miners, Bitcoin’s price influences the earnings power (and valuation) of a few technology stocks. Names like MARA Holdings Inc. (NASDAQ: MARA), Riot Platforms Inc. (NASDAQ: RIOT), and even CleanSpark Inc. (NASDAQ: CLSK) now stand in front of a new potential bull run in their stock prices, driven by the recovery rally of the cryptocurrency benchmark, which is Bitcoin.

MARA Stock: The Price Action Leader in The Pack

The most sincere and transparent indicator that financial markets can give investors is price action because it only represents the current consensus view of the future outlook in an index or specific company. Knowing that both Bitcoin and the S&P 500 are pricing in a potential tariff deal resolution, investors can now drill down to find better opportunities.

Another truth about the market is that it will typically start to look at the bigger companies first regarding market capitalization. This is where MARA stock starts to lead the way, as it has left behind the definition of a bear market (20% sell-off from highs).

It is the biggest on this list, with a $4.2 billion market capitalization.

Investors can take this dynamic as a subtle message, one that implies this stock might be the one to lead (and keep leading) the pack in this cryptocurrency bull run. Understanding the fabric of the market as their full-time job, Wall Street analysts have recently come to the table to reiterate the belief that this will be the likely leader in the coming months.

HC Wainwright, in particular, reiterated their Buy rating on MARA stock as of late April 2025 while the markets were still in the midst of peak volatility driven by tariff uncertainty. This time, they also placed a valuation of up to $28 per share on the stock, calling for it to rally by as much as 93.2% from where it trades today.

Bottoming Begins at Riot Platforms

Over the past month, the signs coming out of Bitcoin and MARA stock have spilled over into the smaller names in the space, as is typically the case. Now that Riot Platforms stock has fallen to only 53% of its 52-week high, some bearish traders decided that the juice isn’t worth the squeeze in being short this stock and the industry as a whole.

This is why investors can note that Riot Platforms’ short interest has declined by as much as 2.6% this past month alone, a clear sign of bearish capitulation as these short sellers understand that risk-reward ratios now favor the bold buyers in the stock today.

Like MARA stock, some Wall Street analysts have come together to give retail traders a view of what Riot Platforms stock might hold for them in the future. Particularly those at Piper Sandler after they placed a $18 price target on the company as of late April 2025, which would call for just over 100% upside potential compared to today’s low price.

The trend is starting to become clear for these lateral cryptocurrency plays. The theme seems to be centered around triple-digit upside as the benchmark continues to reach higher highs.

Upside Tail Risk Is CleanSpark’s Advantage

This is the most discounted name on today’s list, trading at only 43% of its 52-week high, which likely also creates the biggest upside tail risk in this new cryptocurrency bull run. Some institutions have started to catch up to this theme, as seen in the net $34 million worth of institutional buying over the current quarter.

A new conviction to buy this beaten-down Bitcoin miner aligns with the broader thesis that Bitcoin’s higher prices will likely help these names deliver better-than-expected earnings, driving their prices higher. However, regarding CleanSpark, most returns are on today’s list.

With Wall Street analysts’ consensus price target set at $21.6 per share, investors can expect a net implied run of up to 144.9% from today’s low, crystallizing the view of a potential upside tail risk in a stock that likely has already priced in all its downside at these levels.

Monster Beverage Stock: Short Report Risks vs Upside Potential

Monster Beverage’s (NASDAQ: MNST) stock received an unwelcome short report that has produced a headwind for the share price.

Spruce Point alleged issues with increased competition, increased regulatory hurdles, and unsustainable international growth among other causes for concern.

However, the report reads more like a reason not to invest than a compelling argument for sharply or rapidly deteriorating stock prices, and other market forces disagree.

Those include the analysts, who are raising their price targets in Q2, and the institutions, who are buying.

They are doing so because the company continues to gain traction in critical categories and regions, makes money, and buys back shares.

Analysts and Institutional Trends Offset Short-Sellers: Higher Share Prices Indicated

The analysts’ trends, specifically the six revisions tracked by MarketBeat since Spruce Point issued its report, contradict it. Those include six price target revisions from analysts that rate the stock as a firm Hold with bullish bias. The bias is bullish because more than 50% of the ratings are a Moderate Buy or better, and the price targets suggest a move to the high-end range relative to the trend.

The range of fresh targets runs from $50 to $71, lifting the high-end and the consensus with consensus up 500 bps month-to-month in early May. Throwing out the outliers, the trimmed data set puts this market at $63.50 compared to the broader consensus, a5% gain in early May, and a new all-time high when reached

Likewise, institutional trends are bullish for this consumer staples stock. Institutional activity has ramped higher since Q3 2024, including selling, but the buying has offset it the entire time. Institutions own more than 70% of the stock and are buying it at a pace of more than two to one relative to sellers in early Q2. This strong support base and tailwind for the market will help push it to new highs.

The move to new highs is significant for this market because of the technical setup and the short interest. Short interest has been elevated since last year and increased by 10% in April. A  move to new highs could trigger short covering, but a short squeeze is unlikely. Even with the elevated nature and 10%, this market is still only 2% short, with little reason for short interest to increase.

Monster Beverage Navigates Headwinds in 2025

Monster Beverage’s Q4 2024 results reflect the impact of headwinds and the company’s strengths and diversification. The alcohol segment is struggling with hard seltzers that are out of favor, and consumers are shopping for cheaper beer brands, but energy brand strengths are resilient. The company reported strength in its international business and regained strength in critical US categories such as convenience stores. The takeaway is that while results were mixed relative to analysts’ forecasts, the company grew revenue at a mid-single-digit pace and earnings nearly doubled. The estimates for Q1 2025 are for similar results.

Monster Beverage’s capital returns are monstrous. The company doesn’t pay dividends but aggressively buys back its shares. Buybacks reduced the count by 4.2% in 2024 and are expected to continue in 2025. The company had about $500 millionleft on its authorization, positive cash flow, and a healthy balance sheet. Highlights at the end of 2024 included a net cash position and long-term debt leverage of less than 0.1x equity.

Monster Beverage Is in an Uptrend, Plain and Simple

Monster Beverage’s stock price has been range-bound for the last two years but is otherwise in an uptrend and on track to set new highs. The price action in early May has the market nearing the all-time high, likely reached by mid-year. The risk is the Q1 results and guidance update. If business headwinds intensify, this market could remain range-bound until later in the year.