“Big Short” investor Michael Burry issued a warning Monday about Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) planning to issue 100-year bonds, drawing parallels to Motorola Solutions Inc.‘s (NYSE:MSI) downfall following a similar move in 1997.
Burry Draws Motorola Comparison
Writing on X Monday, Burry stated, “Alphabet looking to issue a 100-year bond. Last time this happened was Motorola in 1997, which was the last year Motorola was considered a big deal.”
He elaborated on Motorola’s decline, noting that at the start of 1997, Motorola was among the top 25 companies in both market cap and revenue in America. At that time, Motorola’s brand was the most valuable in the U.S., surpassing Microsoft Corp (NASDAQ:MSFT).
Burry noted that in 1998, Nokia Oyj (NYSE:NOK) overtook Motorola in the cell phone market, and after the launch of Apple Inc.‘s (NASDAQ:AAPL) iPhone, Motorola faded from the consumer spotlight. Today, Motorola ranks as the 232nd largest company by market cap, with only $11 billion in sales.
Alphabet’s Bond Sale Details
Multiple media outlets have reported that Alphabet is issuing 100-year debt as part of a significant bond sale. The Google parent plans to offer debt in dollars, British pounds, and Swiss francs with varying maturities.
The sale will include sterling debt with maturities ranging from three to 100 years, and Swiss franc debt with maturities from three to 25 years, The Wall Street Journal reported, citing an investor familiar with the matter.
Alphabet did not immediately respond to Benzinga’s request for comment.
Burry’s Broader AI Warnings
The warning follows Burry’s recent critiques of tech giants’ AI investments. In January, Burry criticized companies like Microsoft and Alphabet for heavy AI infrastructure spending he believes will soon become obsolete. He also recently bet against Nvidia Corp. (NASDAQ:NVDA), questioning the AI chip boom’s sustainability.
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Price Action: Alphabet shares were up 0.81% at $325.71 at the time of publication on Monday, according to Benzinga Pro data.
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