
Alphabet, Inc.’s stock rose 0.8% in overnight trading late Sunday after a report said that the search giant was mulling issuing Australian dollar bonds.
Bloomberg reported that Alphabet had hired bankers for what would be its first offering of dollar bonds in the region. The company may sell the notes across 4 maturities, including as long as 20 years, according to an emailed statement from Australia & New Zealand Banking Group reviewed by the news agency.
U.S. tech firms are flooding credit markets with debt to fund investments in AI. Together with firms like Meta Platforms and Amazon.com, the tech giants have raised hundreds of billions in dollars and other currencies this year.
Alphabet priced $25 billion of bonds in the U.S. dollar market earlier this month and has also issued notes in Swiss francs, British pounds, euros, Canadian dollars and Japanese yen in 2026.
The company also recently raised nearly $85 billion through an equity offering, and kicked off the trend of Big Tech tapping credit markets despite having significant cash in the bank.
Intel recently raised over $20 billion through an equity offering, and Oracle expects to raise $45 billion-$50 billion through debt and stock this year.
While Big Tech’s huge investments in AI are helping power the stock market to record highs again, higher yields are fueling a debate about whether the firms can generate profits from those investments.
Retail View on GOOGL
On Stocktwits, the retail sentiment for GOOGL dipped over the past week and was ‘bearish’ as of late Sunday. “$GOOGL Structure in this range definitely looks like accumulation. Big upside coming,” a trader wrote.
GOOGL stock declined 2.4% in the week, its second straight week in the red. “$GOOGL everyone talking about Berk position. But the stock really didn't do much after disclosure. Don't really trust AH pump's and dumps..let's see what happens on Monday open,” another trader said.
Google parent Alphabet is now the third largest holding in Berkshire Hathaway’s equity portfolio.
The investment firm’s second-quarter portfolio update filed with the securities regulator on Friday revealed that Berkshire owns almost 106 million of Alphabet’s Class A and Class C shares, currently worth around $36.6 billion.
That puts it about $1.5 billion ahead of Coca-Cola’s $35.1 billion but well behind Apple’s $69.7 billion and American Express′ $51.9 billion in the portfolio.
Roughly 60% of the 48.1 million shares added during the quarter were purchased by Berkshire directly from Alphabet in a $10 billion private placement sale announced by the companies in early June.
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