ALPHABET $GOOGL MANDATORY CONVERTIBLE STOCK SALE IS SAID TO BE OVERSUBSCRIBED
ALPHABET $GOOGL MANDATORY CONVERTIBLE STOCK SALE IS SAID TO BE OVERSUBSCRIBED Source: Wall St Engine
Oppenheimer makes an interesting point here.
If $GOOGL — a company printing massive FCF — is tapping equity markets for $80B, it’s because credit conditions are tightening. The private credit canary in the coal mine may have just died. The structure of the raise says a lot: a massive $40B ATM alongside a $10B private placement to Berkshire Hathaway. That’s what a desperate search for liquidity looks like. So who else is heavily exposed to credit markets? $ORCL is probably the first name that comes to mind. The stock has ripped higher and suddenly it feels like everyone forgot the financing overhang. Meanwhile, debt-to-equity is still above 5x. $META continues spending at an almost irrational pace. At some point this may force Zuck to reevaluate the playbook here. (Arete upgraded it today, by the way.) Then you have the companies that need constant access to capital just to keep expanding. $EQIX and $DLR immediately stand out. A 200MW data center now costs roughly $8B to build — not exactly pocket change. But the biggest credit story of them all might be $CRWV. The stock rallied yesterday on $DELL headlines, yet the company is sitting on $21B of debt, including an $8.5B delayed-draw term loan backed by GPUs. Source: Scrooge McDuck
Google Stock Buybacks Per Year
AI is a capital intensive business. Source: Brandon Carl @brandonjcarl
GOOGLE $GOOGL JUST ANNOUNCED AN $80 BILLION CAPITAL RAISE TO BUILD AI INFRASTRUCTURE
And Berkshire Hathaway $BRK.B is writing a $10 billion check to get in. Here's the full breakdown: THE DEAL: - $30B in underwritten public offerings - $40B through an at-the-market stock program starting Q3 2026 - $10B private placement to Berkshire Hathaway THE BERKSHIRE PIECE: - $5B in Class A Common Stock at $351.81 per share - $5B in Class C Capital Stock at $348.20 per share - Berkshire has been building this position since Q3 2025 THE PURPOSE: - Scale AI compute infrastructure to meet "unprecedented customer demand" - Approximately $30B of the ATM proceeds will cover 2026 employee equity tax obligations - Remaining proceeds go directly to AI infrastructure buildout Source: Evan
Google $GOOGL now has a $467.6 Billion revenue backlog up from $92.4B in the same quarter last year.
Source: Evan on X, Fiscal.ai
$GOOGL trades at 133x free cash flow.
For context: its pre-COVID multiple was ~20x. And free cash flow hasn't grown since 2021. GQG Partners — one of the world's top institutional investors — just published a full research note titled: "Not Much Alpha Left in This Bet." Their three concerns: 1. AI is cannibalizing Google's core search revenue. Over 50% of searches may now end without a single click. No click = no ad impression. 2. CapEx is exploding. Google Cloud's capital spending now exceeds the revenue it generates. $175–185B in CapEx planned for 2026. Google Cloud generated $ 59B in revenue in 2025. 3. Advertising is cyclical. When the economy slows, ad budgets are the first to be cut. The last time this happened — 2022 — the stock fell 40%. Is Alphabet priced for perfection ? Source: Thierry from arvy @ThierryBorgeat
The Rise of Alphabet
Source: The Market Mind
Google portfolio
Source: Stocks World
