Maybe they’re trying to hedge their bets?

If you think a dollar today is going to be worth significantly less tomorrow holding cash doesn’t seem smart. So where do they put the money?

Expansion is tough when interest rates are “high” (higher than recent history) and it’s a downturn, so that’s out.

Employees? If there are tough times now (missing earnings expectations) and harder times projected ahead hiring is unlikely (in fact more likely to implement layoffs like we’re seeing).

Extra equipment? That has its own problems.

My guess: At least if they buy back some stock, they burn cash that’s otherwise losing purchasing power, and prop up the stock price. It can also boost their financial ratios, which would be helpful if they believe they may need access to future credit in a tight market. Basically, the buyback increases the company’s equity value.

Also, the companies can “buy the dip” if they believe the shares are undervalued - buy them back now while undervalued and re-issue for more money when the stock price increases.