NEW YORK, June 4, 2026, 08:03 EDT
Alphabet Inc. shares fell in premarket trading Thursday as the Google parent’s larger $84.75 billion equity raise met investor concern over the company’s spending pace on artificial intelligence. Before the bell, Alphabet Class A was at $358.99, off 0.7%. Class C was at $355.68.
No market holiday is scheduled today in the U.S.; it’s a standard trading day. Nasdaq’s next June market holiday isn’t until 2026. Stocks trade in the usual session from 9:30 a.m. to 4 p.m. ET. Pre-market goes from 4 a.m. through the bell at 9:30 a.m. ET.
Alphabet’s stock sale is set to start closing today, hitting markets as Wall Street faces new questions about its appetite for deals to finance AI infrastructure. That means data centers, chips, and energy to run AI at scale. Stocks aren’t helping. The Nasdaq Composite slid 0.89% on Wednesday, and all three major indexes finished in the red.
Alphabet set the price for 25,459,689 Class A shares at $355.1982 each, and matched that number for its Class C shares at $351.8018. The company also priced two blocks of 167.5 million depositary shares, $50 apiece, linked to 6.25% mandatory convertible preferred stock. That preferred pays a fixed dividend and will convert to common stock later.
Alphabet’s package comes with a common-share sale, $16.75 billion in depositary shares, a $40 billion at-the-market program and a $10 billion private placement with Berkshire Hathaway. At-the-market means shares can be sold gradually based on market prices; Alphabet said those sales should not start until the third quarter. The common-stock sale is set to close June 4. The depositary-share offerings are due to close June 5.
Alphabet said it plans to use funds from its underwritten offerings and private placement for general corporate needs, such as capital spending on AI infrastructure and global compute. The tech giant told investors it expects capital expenditures of $180 billion to $190 billion in 2026. It also forecasted a significant increase in 2027 spending over 2026. In the 12 months ended March 31, Alphabet brought in $174 billion in operating cash flow and has issued more than $85 billion in debt during the past year.
Alphabet CEO Sundar Pichai went on X to thank investors. “A huge thank you to our investors, including Berkshire Hathaway who invested $10B,” he posted. Berkshire’s presence is key—it isn’t known as fast money in the public markets. X (formerly Twitter)
Steven Check, who runs Check Capital Management, told Reuters that Berkshire is “the kind of shareholder that companies like to have.” Bill Stone, chief investment officer at Glenview Trust Company, said the increased buying shows Greg Abel thinks Alphabet can make a fair return on AI capital spending, despite adding shares. Reuters
Alphabet is betting on growth in its funding pitch. The company reported first-quarter revenue up 22% to $110 billion. Google Search & Other posted a 19% gain. Google Cloud revenue increased 63%, and the cloud backlog almost doubled from the last quarter to above $460 billion.
Big tech is keeping up the AI spending. Reuters said this week that Alphabet, Amazon, Microsoft and Meta all signaled no slowdown, with combined spending now projected at over $700 billion for this year, up from about $600 billion.
The trade can swing the other way. Issuing new shares dilutes current holders, since profits get split over more shares, and the preferred stock is set up to convert into common down the line. Alphabet’s capped-call deals limit how much dilution hits, but only to a point. If AI demand falls off, data-center costs go up, or cloud growth ends up weaker than hoped, the financing could end up seen as a drag, not a show of strength.
Alphabet is facing a more focused test right now. Investors are weighing if the dip before the open is simply the market taking in a big transaction, or if it’s an early read on how much the company’s AI spending is affecting the stock’s valuation.
