Still Bullish On Alphabet After Its $85B Capital Raise

2026-06-06 01:09:42 ET

Alphabet's (GOOG)(GOOGL)(GOOG:CA) $85 billion capital raise has generated predictable and valid concerns about dilution, sending the stock down pre-market. Investors have been genuinely worried that a company that generated $174 billion of operating cash flow over the last twelve months, raised more than $85 billion of debt over the last year, and sits on one of the strongest balance sheets in the corporate world, believes it can productively deploy another $80 billion in equity. Having spent a lot of time in big tech's earnings in Q1, I must say clues to the answer were visible throughout the company's Q1 26 operating results and management commentary, where Search revenue grew 19% to $60.4 billion, Google Cloud revenue grew 63% to $20 billion, and Cloud backlog exceeded $460 billion and nearly doubled sequentially. Management explicitly stated that demand for its AI products and services is exceeding available supply and that they need to invest more to meet that demand....

Read the full article on Seeking Alpha

For further details see: