Google Parent Alphabet Is Issuing More Shares. Time to Sell?
New share offerings are unusual for a company as well-funded as Alphabet.
Google Parent Alphabet Is Issuing More Shares. Time to Sell?
Overview
Google parent Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) made a decision that seemed unthinkable until recently. It announced it will issue $80 billion worth of shares, a move that will slightly dilute its stock.
On the surface, the move seems hard to believe. As of the end of the first quarter, it held $127 billion in cash, and its digital ad business generated over $64 billion in free cash flow over the trailing 12 months.
Details
That situation forces investors to confront this investment thesis head-on. Do the massive capital expenditures (capex) spending and share sales mean investors should sell the communications stock, or should they continue to hold shares in the Google parent?
Source
Originally published at www.fool.com.
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