$5B+ in Buybacks: What DraftKings, AppLovin, and Altria Are Telling You

Three well-known stocks recently made bold moves to return more capital to shareholders, with over $5 billion in fresh buyback authorizations announced.

These bold buyback announcements from DraftKings (NASDAQ: DKNG), AppLovin (NASDAQ: APP), and Altria Group (NYSE: MO) offer a clear window into how each company views its valuation—and where investors might find upside in today’s market.

DraftKings: Doubles Buyback Authorization, Despite 36% Drop

Once-loved consumer discretionary stock DraftKings has recently taken a serious tumble. 

In 2023, online sports betting giant DraftKings saw its shares rise by a whopping 209%.

It eked out a 5% return in 2024 but is now down nearly 18% in 2025. Since the end of August, shares have lost around 36% of their value.

Investors have viewed the rise of prediction markets, particularly those integrated by Robinhood Markets (NASDAQ: HOOD) through its partnership with Kalshi, as a significant threat to DraftKings. DraftKings, however, isn't staying on the sidelines. It said in its latest earnings call that it plans to launch its own prediction markets offering, signaling strategic adaptability. 

During the call, DraftKings also announced it would be doubling its buyback authorization. The firm’s buyback capacity has now risen from $1 billion to $2 billion. This equates to over 13% of the company’s approximately $15.2 billion market capitalization, significant for a growth stock. 

It appears that DraftKings won’t waste time in using this capacity, anticipating that it will be “active with share repurchases over the next quarter." The huge boost in DraftKings’s buyback authorization, combined with the precipitous fall in shares, suggests that the company sees value in its stock price.

AppLovin: Adds More Than $3 Billion to Its Buyback Coffers

Shares of the hottest advertising technology stock in the market, AppLovin, are up around 84% in 2025, and up more than 100% over the past 52 weeks.

Along with releasing solid earnings, AppLovin announced an increase to its buyback program on Nov. 5. The company added $3.2 billion to its repurchase authorization. This brings its total buyback capacity to $3.3 billion as of the end of October. While that figure is equal to a modest 1.6% of its approximately $201 billion market capitalization, it reflects a commitment to consistent capital returns. 

AppLovin spent an average of $750 million per quarter on buybacks over the past year. Maintaining that pace would nearly exhaust the current authorization within the year. 

AppLovin has also managed to reduce dilution from stock-based compensation, with shares outstanding falling from 346 million to 341 million over three quarters. That’s a notable achievement in tech, where dilution often offsets repurchase gains.

Altria Eyes Higher Buybacks, Maintains 7%+ Dividend Yield

The world’s third-largest tobacco company, Altria, has performed relatively well in 2025, delivering a total return of 18%.

The increasing popularity of oral and smokeless tobacco products has been a boon to the industry, helping to offset declining cigarette volumes.

Still, shares are down nearly 6% after the company’s Oct. 30 earnings release, as the firm’s sales and guidance were disappointing.

Altria increased its buyback authorization from $1 billion to $2 billion on Oct. 30, equal to about 2% of its nearly $98 billion market capitalization. The new authorization expires at the end of 2026, meaning the company must ramp up buyback activity quickly—potentially to around $500 million per quarter—to fully utilize it. 

What makes this move more significant is how it complements Altria’s impressive 7.3% dividend yield, which ranks among the top five in the S&P 500. The company is sending a clear message: even amid slowing top-line growth, it remains committed to returning capital.

Why These Buybacks Matter for Investors

DraftKings, AppLovin, and Altria Group are all taking significant steps to return more capital to shareholders. For investors, these moves signal where each company sees value—and where shareholders may find opportunity.

Among them, DraftKings stands out for both the scale of its buyback (relative to market capitalization) and its timing, as shares remain depressed. AppLovin's buyback is more about maintaining momentum and controlling dilution, while Altria’s strategy blends aggressive income returns with potential repurchase acceleration.

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