Companies should not spend billions on stock buybacks instead of keeping their factories in running order but the recent baby food issues in the US show that isn't always the case.
It's not one or the other, they can do both. You think that a company would rather do a stock buyback and NOT keep their factories in running order so their stock will tank right after they buy back their stock at a higher price?
Depends on the vesting schedule of the people doing the buybacks.