If Alphabet can afford it why are they issuing $80B in new shares for fresh capital?

When money is cheap you take it. Google sees all the capital waiting to pour into these AI IPOs, and correctly assumed they could tap into that with little dilution.

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skybrian 5 hours ago | parent | prev | next [-]

It makes good financial sense for a company to sell shares when the price is high and do stock buybacks when it's low. I guess they think the price is on the high side?

Also, selling shares puts them in a better position to survive a downturn (more cash, less debt).

	▲	jorvi 3 hours ago \| parent \| next [-]
		In a real competitive market it would never make financial sense to do stock buybacks because competition is so fierce you need to invest it all in R&D and sharp prices for your customers. See the Chinese EV market. Stock buybacks are also a tax trick. They're just holistically evil and should have never been made legal.
	▲	Analemma_ 4 hours ago \| parent \| prev [-]
		Google is also issuing a bunch of debt this year. It sounds like they need a lot of capital and want to keep a particular debt/equity ratio, rather than having a strong opinion on their share price.

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Qhemlomo 4 hours ago | parent | prev [-]

Just look at the net income of alphabet.

Whatever financial games they play in the background, doesn't matter when you make that much per 2 quarters alone.