Google just opened up the floodgates for the Mag 7 to begin doing ATM offerings.
The Mag 7 used to buy back stock. Now they are dumping shares in the open market.
Why? AI infrastructure.
As long as the capex delivers an ROI, the market may reward it, but it looks like Google feels they have tapped the debt markets enough and now need to visit the equity markets.
They also got Berkshire to buy $10B at $350, showing that Berkshire is supporting the move.
This is incredible to witness...but my question is...will this give the other Mag 7 companies the freedom to do ATM offerings if the market is willing to let them?
This incredible to witness.
$GOOGL $META $AMZN $MSFT
⚠️ WARNING
Berkshire Hathaway is still dumping stocks at a record pace.
14 straight quarters of net selling.
A record $400 BILLION in cash.
They are clearly preparing for something much bigger.
@unusual_whales Interesting proposal but seems like it'd slow down innovation if the government gets too much control. How would that even work practically?
@unusual_whales So it's the shift away from entry-level office gigs more than robots taking over. Makes sense, I've seen new grads struggle to find those first jobs that used to be everywhere in cities.
The rise of remote work explains more of the recent increase in unemployment among young college graduates than the proliferation of AI, according to a Federal Reserve Bank of New York study