Alphabet Plans $80 Billion Stock Sale for AI, Shares Drop 2.7%
Alphabet plans to raise $80 billion through stock sales to fund its artificial intelligence infrastructure buildout, with Berkshire Hathaway committing roughly $10 billion. Shares slid 2.7% in premarket trading after reaching a May 18 record high of $408.61, triggering the biggest one-day market cap drop ever recorded.
1. Fundraising Plan Details
Alphabet announced plans to raise $80 billion through a secondary stock offering aimed at expanding its AI compute infrastructure. The company disclosed that Berkshire Hathaway will contribute approximately $10 billion toward the initiative, underscoring confidence in Alphabet’s AI ambitions.
2. Market Reaction and Valuation Impact
In premarket trading, shares fell 2.7% after touching a $408.61 high on May 18, marking the largest one-day market capitalization decline on record. The slide reflects investor concerns over dilution and the scale of the equity raise.
3. Recent Share Performance
Over the past 12 months, Alphabet’s stock more than doubled, gaining 119.2%, and is up 20.2% year to date. The pullback interrupts a multi-month rally driven by strong advertising revenue and AI-related growth expectations.
4. Analyst and Options Sentiment
Options traders have skewed bullish, with a 10-day call/put volume ratio of 3.14, ranking in the top 15% of readings over the past year. Of 54 analysts covering the stock, 44 carry a ‘strong buy’ rating, while a volatility score of 85 indicates elevated price swings.
