Core Viewpoint - Michael Burry warns about Alphabet Inc.'s plan to issue 100-year bonds, drawing a comparison to Motorola Solutions Inc.'s decline after a similar move in 1997 [1][2][3] Group 1: Alphabet's Bond Issuance - Alphabet is planning to issue 100-year bonds as part of a significant bond sale [4] - The bond sale will include debt in dollars, British pounds, and Swiss francs with varying maturities [5] - The sale will feature sterling debt with maturities ranging from three to 100 years, and Swiss franc debt with maturities from three to 25 years [5] Group 2: Motorola Comparison - In 1997, Motorola was among the top 25 companies in both market cap and revenue in America, and its brand was the most valuable in the U.S. [2][3] - Following the issuance of long-term debt, Motorola's market position declined, and it was overtaken by Nokia in the cell phone market in 1998 [3] - Today, Motorola ranks as the 232nd largest company by market cap, with only $11 billion in sales [3] Group 3: Broader Context and Concerns - Burry has previously criticized tech giants like Microsoft and Alphabet for heavy investments in AI infrastructure, which he believes may soon become obsolete [6] - He has also expressed skepticism about the sustainability of the AI chip boom, particularly in relation to Nvidia Corp. [6]
Michael Burry Warns Alphabet's 100-Year Bond Move Mirrors Motorola's 1997 Decline