Khac Phu Nguyen
1 min read
This article first appeared on GuruFocus.
Alphabet (NASDAQ:GOOGL) shares rose 0.34% to $289.14 as of 9:53 a.m. ET in regular trading on November 10, after Anthropic’s amended registration statement showed Google committing about $10.0 billion to buy shares at the IPO price. The AI developer set a range of $70 to $78 per share, and the placement closes right after the offering.
Seven companies are buying $26.0 billion of nonvoting Class N shares. Google and Nvidia each take $10.0 billion, followed by AMD at $2.5 billion, then Broadcom, Micron and Microsoft at $1.0 billion each and TSMC at $500 million. Google’s purchase partly funds investment obligations it had already committed. Earlier disclosures described a financing deal worth up to $20 billion that shrinks by up to $10 billion if Google buys in the placement. That deal carries a 14.99% ownership cap, which Google can waive.
At the $74 midpoint, $10 billion buys about 135.1 million shares. Alphabet will now hold a stake whose value moves every trading day. On GuruFocus, Alphabet carries a GF Score of 98/100, with Profitability at 10/10, Financial Strength 8/10, Momentum 8/10 and GF Value Rank 7/10. The shares trade 5.26% above the $274.68 GF Value, a “Fairly Valued” reading that leaves little room if the IPO prices at the low end. The next checkpoints are the final price and first-day trading, then how Alphabet reports the mark in fourth-quarter earnings.
