Alphabet's Australian Bond Bid Fuels Big Tech Debt Frenzy

Alphabet's credit market borrowing continues to escalate as it mulls issuing Australian dollar bonds. According to Bloomberg, the tech giant has hired bankers for what would be its first offering of dollar bonds in the region. The company may sell the notes across four maturities, including as long as 20 years.

This move comes on the heels of Alphabet's recent $25 billion bond sale in the US dollar market and other currencies such as Swiss francs, British pounds, euros, Canadian dollars, and Japanese yen in 2026. The company has also raised nearly $85 billion through an equity offering this year.

Big Tech is flooding credit markets with debt to fund investments in AI, with firms like Meta Platforms and Amazon.com raising hundreds of billions in dollars and other currencies this year. Intel recently raised over $20 billion through an equity offering, and Oracle expects to raise $45 billion-$50 billion through debt and stock this year.

Alphabet's borrowing has some investors concerned about the company's ability to generate profits from its massive AI investments. The retail sentiment on Stocktwits was bearish last week, with one trader writing 'GOOGL Structure in this range definitely looks like accumulation. Big upside coming.'