By Yoruk Bahceli, Aditya Soni, Zaheer Kachwala and Matt Tracy Feb 10 (Reuters) - Alphabet on Tuesday sold a rare 100-year bond, a memo from the lead manager showed, part of a $31.51 billion global bond raise, as artificial intelligence-driven spending sparks a surge in borrowing at U.S. tech giants. Alphabet's sale of the ‌century bond is the tech industry's first since Motorola's issuance that dates back to 1997, according to LSEG data. "You have an extraordinary time period that we're ‌living throug ...

Core Viewpoint - Michael Burry suggests that Google's decision to issue 100-year debt indicates a potential decline in the company's dominance, drawing parallels to Motorola's decline after a similar bond issuance in 1997 [1][3]. Company Analysis - Alphabet (Google) is planning to issue 100-year bonds, a move that Burry associates with the decline of Motorola, which was the last year it was a dominant player in the market [2][3]. - By 2026, Motorola had significantly fallen in market cap, ranking 232nd with only $11 billion in sales, which Burry uses as a cautionary example for Alphabet [3]. Industry Context - Despite Burry's bearish outlook, Alphabet's business has shown continuous growth, particularly in artificial intelligence (AI) products, and its stock remains positive in early 2026 [5]. - However, Google's search market share has dropped below 90% for the first time in a decade, indicating a potential decline in its dominance [8]. - The decline in search quality and the rise of AI platforms like ChatGPT have contributed to this shift, leading to a significant drop in traffic for many media websites [9]. Market Sentiment - The stock market has reacted negatively to strong earnings reports from major tech firms like Microsoft, Amazon, and AMD, raising concerns about their exposure to AI and the potential for a recession [10][11]. - There are indications that previously announced AI infrastructure deals have been scaled back or canceled, adding to the uncertainty in the sector [12]. - The market-to-GDP ratio is at record highs, suggesting that any disruption could lead to significant market volatility [13].

Core Viewpoint - Alphabet and Amazon are planning unprecedented capital expenditures, with Alphabet potentially spending up to $185 billion and Amazon $200 billion this year, raising questions about investor willingness to finance these investments [1][2]. Group 1: Capital Expenditure Plans - Alphabet's capital spending could reach $185 billion, while Amazon's may hit $200 billion, marking the highest CapEx in history for such initiatives [1][2]. - Both companies have substantial cash reserves but prefer to raise funds through the market rather than depleting their cash [3]. Group 2: Investor Demand and Bond Issuance - Alphabet initially aimed to raise $15 billion but increased the target to $20 billion due to high investor demand, also planning to issue bonds in British pounds and Swiss francs [3]. - The issuance of a 100-year bond by Alphabet is notable, as such long-term bonds are rare for corporations, typically issued by governments or universities [4]. Group 3: Competitive Landscape - Major tech companies are increasing spending to compete aggressively in the "air race," aiming to secure a leading position in future markets [7][8]. - The competition among Alphabet, Amazon, Microsoft, and Meta is intense, with each company striving to capture significant market share and profits [8]. Group 4: Historical Context and Risks - The rarity of 100-year bonds raises concerns about long-term viability, as seen in past examples like Motorola and J.C. Penney, which faced significant challenges after issuing such bonds [11][12]. - Despite the risks associated with long-term bonds, Alphabet is currently viewed as a strong company with robust growth and aggressive investment strategies [13].

Core Viewpoint - The U.S. administration plans to exempt major tech firms like Amazon, Google, and Microsoft from upcoming tariffs on chips, facilitating their development of AI data centers [1] Group 1: Company Impact - Amazon, Google, and Microsoft are identified as key beneficiaries of the tariff exemption, which is aimed at supporting their AI infrastructure projects [1]

Core Viewpoint - The majority of the Magnificent Seven stocks have reported their latest quarterly financial results, revealing significant capital expenditure (CapEx) plans for 2026, estimated to reach $670 billion among four major tech companies [1][2]. CapEx Spending Overview - The estimated CapEx for 2026 includes: Meta Platforms up to $135 billion, Amazon.com up to $200 billion, Microsoft up to $150 billion, and Alphabet up to $185 billion [7]. - This $670 billion spending ranks as one of the largest in U.S. history, only trailing the Louisiana Purchase in terms of percentage of GDP [3][7]. Investor Sentiment - Investors are becoming cautious as the CapEx as a percentage of annual revenue rises, with Meta and Microsoft projected to exceed 30% of their annual revenue in 2025, and Meta potentially surpassing 50% for the first time [4]. - Despite strong earnings reports, the mixed results from investors indicate a reluctance to embrace increased CapEx without corresponding growth [5][9]. Stock Performance - Year-to-date returns for the four companies show mixed results: Meta +4.4%, Amazon -7.8%, Microsoft -12.8%, and Alphabet +2.7%, with Alphabet being the only one outperforming the S&P 500's one-year gain of +14.8% [6][8]. - The increase in CapEx, particularly Amazon's 60% rise, has negatively impacted its stock performance, highlighting investor skepticism towards high spending without clear growth justification [9].

History was made as Alphabet ( GOOG/ GOOGL ), a firm that has existed for less than 30 years, announced plans to sell 100-year bonds as part of their debt issuance this year. Bloomberg is reporting that theyNewsletter Author | Investment Advisor | Top 5% of Experts on TipRanks | Long Signal, Short Noise | The Macro Obsession newsletter is a weekly brief on current events and trends in finance, tech, and the real economy. I am a macro-oriented and data-driven investor who obsesses over connecting dots that o ...

Amazon, Meta, and Alphabet are pour billions into AI. Walmart could borrow their massive capital expenditures to transform itself. ...

Bank of America thinks that the stock market’s “easy” leadership era is buckling, and it’s not because the economy is suddenly falling apart. In a Friday note reported by Business Insider, Michael Hartnett’s team argued that the early-2020s era, when Big Tech (and the Magnificent 7) could do no wrong, is over, and that it’s time to watch the market segments that actually look like the economy. A big part of that is that the AI boom is effectively dragging hyperscalers into a significantly heavier spendi ...

Core Insights - The U.S. construction industry is projected to need 456,000 new workers by 2027, a 30.7% increase from the 349,000 needed in 2023 [1] - The demand for new workers this year is primarily driven by retirements rather than an increase in construction services [2] - Overall construction spending is expected to recover and grow for the first time in years, with every additional $1 billion in spending creating demand for 3,450 new jobs [3] Labor Market Dynamics - Labor shortages in the construction sector are exacerbated by immigration policies, with 92% of hiring construction firms reporting difficulties in finding qualified workers [5] - AI data center projects are more lucrative, leading to labor shortages for other types of construction projects such as apartments and healthcare facilities [6] Future Projections - If spending forecasts are conservative, the industry may require even more workers, especially with tech giants expected to increase capital expenditures significantly [4] - Employment in skilled trades is projected to grow by 5.3% from 2024 to 2034, with electricians and HVAC technicians seeing even higher growth rates of 9.5% and 8.1%, respectively [7]

Let's bring in Ed Yardi of Yardeni Research. It's great to have you here. Really appreciate it.First top level thoughts about the market today. What do you think is going on. >> Happy days are here again.I mean across the board, everybody's buying buying buying not just stocks but Bitcoin, gold, and uh so the asset a lot of asset classes are doing extremely well. And I I think a lot of that has to do with all this spending that these uh hyperscalers are are planning to do. $650 billion this year is going to ...