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How is Alphabet suddenly short of capital?
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001652044/0...
I guess they don't want to burn it down to $40B?
Interesting how the market has reacted to this news (down 1.7% after hours)
Well, I mean, you'd expect this move to mechanically push share prices down.
Interesting how the market has reacted to this news (down 1.7% after hours)
Well, I mean, you'd expect this move to mechanically push share prices down.
We will soon see "improved" 'AI Mode' most likely.
Earlier quoted context omitted.
Well, I mean, you'd expect this move to mechanically push share prices down.
Why? There’s $80B of dilution from new shares issued, so to keep share prices constant market cap would have to increase by $80B. Simultaneously, there $80B in additional assets on the balance sheet, so if the company was previously correctly valued at $N market cap it would now be correctly valued at $N+$80B market cap, right? My intuition is that capital raises, just like stock buybacks, should be first-order (“mec…
Quoting: In addition, Alphabet has reached an agreement to sell $10 billion of stock to Berkshire Hathaway Inc. in a private placement, comprised of $5 billion in Class A Common Stock at a price of $351.81 per share and $5 billion in Class C Capital Stock at a price of $348.20 per share. This investment by Berkshire Hathaway adds to the position it has built since Q3 2025.
Recently I have been asking YouTube's new AI about some videos ("when is Steam metrics mentioned in the video?" for example), which means they also index videos. This is an unthinkable amount of data.
I'm actually impressed at how bad Alphabet is with LLMs since they invented the thing as we know AND have all the data to train on, yet OpenAI and Anthropic are eating their pie.
Earlier quoted context omitted.
Well, I mean, you'd expect this move to mechanically push share prices down.
Why? There’s $80B of dilution from new shares issued, so to keep share prices constant market cap would have to increase by $80B. Simultaneously, there $80B in additional assets on the balance sheet, so if the company was previously correctly valued at $N market cap it would now be correctly valued at $N+$80B market cap, right? My intuition is that capital raises, just like stock buybacks, should be first-order (“mec…
And in this specific case, selling shares to Berkshire at a 5% discount has a pretty clear signalling effect.
Earlier quoted context omitted.
Well, I mean, you'd expect this move to mechanically push share prices down.
Why? There’s $80B of dilution from new shares issued, so to keep share prices constant market cap would have to increase by $80B. Simultaneously, there $80B in additional assets on the balance sheet, so if the company was previously correctly valued at $N market cap it would now be correctly valued at $N+$80B market cap, right? My intuition is that capital raises, just like stock buybacks, should be first-order (“mec…
How is Alphabet suddenly short of capital?
The market thinks Alphabet is most able to efficiently turn $80B into more money by investing in AI infrastructure.
So, Alphabet is happy to oblige them, given the favorable terms.