Google has more cash than debt, so higher interest rates are unlikely to stop it issuing more bonds to fund more data-center investment. But it is not immune to the capital markets, because its cloud relies on Anthropic as a key source of incremental demand.
“AI Stocks Crack, Yields Fall, Defensives Surge; What’s Next | Cameron Dawson”
David Lin Published Oct 14 · 3 passages
Jump to any passage
3 passages
not necessarily whether or not interest rates go up and if Google can issue more debt in order to build more data centers. The reality is is that Google has net negative net debt. Has more cash than it has debt.
Uh, and I think that that's an important point because your Fed raises rates or interest rates go up. It's not necessarily going to deter Google from issuing more bonds and investing more in in these data centers.
But that does not mean that Google is immune to the vagaries of the capital markets, right? because Google is relying on anthropic uh Microsoft's relying on open AI to be the key source of this incremental demand for cloud.
What this channel has said about $GOOGL
David Lin has 2 calls on this stock; only the adjacent ones are shown.