Mohammad Haque
$GOOGL (Alphabet Inc Class A) is doing something very big, but not all investors are happy. They are selling $80 billion of new shares to get cash for building massive data centers. The good news is that Warren Buffett's company, $BRK.B (Berkshire Hathaway Inc) , is buying $10 billion of these shares. This shows that the smartest investors believe in Alphabet’s long-term future and growth. But there is a bad side, and Alphabet stock dropped more than 2% yesterday. Many investors are angry because selling new shares causes "dilution." This means your shares become worth a little bit less because the company is creating new pieces of the pie. Also, people are asking why Alphabet is not using its own huge cash savings instead of making shareholders pay. They are spending almost $190 billion this year alone, and some fear they are spending too fast. So, it is a big bet. It brings heavy investment from $BRK.B but it hurts current shareholders today for a promise of growth tomorrow. What are your thoughts on this news? $NSDQ100 $SPX500
Not investment advice. The author may have financial interests in the mentioned instruments.
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