ARK Invests $96M in Alphabet as Google Plans $80B Equity Raise
Cathie Wood’s ARK acquired 267,582 Alphabet shares worth $96 million while selling AMD, Baidu and Teradyne positions as GOOGL shares rose following plans to issue $80 billion in equity. Google Cloud revenue surged 63% to $20 billion in Q1, driven by Big Tech’s $700 billion AI infrastructure outlay this year.
1. ARK's Significant GOOGL Acquisition
ARK Investment disclosed purchasing 267,582 Alphabet shares valued at about $96 million across its funds, marking aggressive accumulation since November. The firm simultaneously trimmed positions in AMD, Baidu and Teradyne as GOOGL shares gained 0.5% overnight.
2. Google Cloud Performance
In the March quarter, Google Cloud revenue grew 63% to $20 billion, topping analysts’ 50.1% consensus estimate and representing the strongest growth rate since segment reporting began in 2020.
3. Equity Issuance Plans
Alphabet announced plans to raise $80 billion via fresh equity issuance to fund AI capacity expansion, a move that sparked a 4% stock drop on dilution concerns before the ARK purchase.
4. Broader AI Infrastructure Spending
Big Tech companies including Alphabet, Amazon and Microsoft are on track to spend over $700 billion on AI infrastructure this year, boosting demand for data center power providers such as American Electric Power, which has secured 63 GW of contracted load by 2030.
