Alphabet Inc. (GOOGL) shares slipped on Tuesday after the company filed paperwork for a massive $20 billion bond offering. When a tech giant decides to tap the debt markets for that kind of cash, people notice.
The Securities and Exchange Commission filing reveals that Alphabet is spreading this debt across seven different tranches with varying interest rates and maturities. The shortest notes mature in 2029, while the longest stretch all the way to 2066. That's a 40-year bond, which means some investors are essentially betting on Google's relevance well into the second half of this century.
Here's the breakdown: $2.5 billion in 3.700% notes due 2029, $3 billion in 4.100% notes due 2031, $3 billion in 4.400% notes due 2033, $4.25 billion in 4.800% notes due 2036, $1.5 billion in 5.500% notes due 2046, $4 billion in 5.650% notes due 2056, and $1.75 billion in 5.750% notes due 2066. The trade date is February 9, with settlement scheduled for February 13.
Credit Ratings Signal Financial Strength
The bonds aren't exactly risky, at least according to the ratings agencies. Moody's assigned an Aa2 rating with a Stable outlook, while S&P gave them AA+ (Stable). Those are premium grades that signal Alphabet's balance sheet remains rock solid despite the massive borrowing.
The filing also noted that Alphabet might raise additional funds through British pound and Swiss franc-denominated offerings in the near term, though those aren't required for the dollar-denominated notes to proceed.
Burry's Warning Shot
Investor Michael Burry, known for predicting the 2008 financial crisis, took to X on Monday to sound the alarm about Alphabet's century bond plans. "Alphabet looking to issue a 100-year bond. Last time this happened was Motorola in 1997, which was the last year Motorola was considered a big deal," Burry wrote. The comparison isn't exactly encouraging—Motorola's dominance didn't last much beyond that bond issuance.
Fueling Massive Capital Spending
The bond offering makes more sense when you consider Alphabet's spending plans. During the company's fourth-quarter earnings call, CEO Sundar Pichai revealed that capital expenditures for 2026 are projected to fall between $175 billion and $185 billion. That's an enormous amount of money, largely driven by investments in artificial intelligence infrastructure and data centers.
Market Performance Snapshot
Looking at how Alphabet (GOOG) stacks up, the company shows strong quality metrics with a score of 95.17, indicating a healthy balance sheet. Momentum also looks solid at 92.46, meaning the stock has been outperforming the broader market. The weak spot? Valuation. With a score of just 31.5, Alphabet is trading at a steep premium relative to its peers.
Price Action: Alphabet shares were trading at $314.98, down 2.90% on Tuesday.
