Alphabet Inc. shares declined 2.5% to $322.86 at the start of Monday's trading session, underperforming the broader market as investors reacted to the company's latest financing moves.
The Google parent company is preparing to issue approximately $15 billion in U.S. dollar-denominated bonds, according to regulatory filings. The offering is structured in up to seven tranches, with the longest-dated portion maturing in 2066. Initial pricing discussions suggest a spread of about 1.2 percentage points above comparable Treasury yields for that longest tranche.
In a separate development, TotalEnergies announced it has signed two long-term agreements to supply solar power to Google's Texas data centers. The 15-year contracts aim to deliver 1 gigawatt of capacity, with construction on both projects expected to begin in the second quarter. Google's clean-energy director noted the agreements would "add necessary new generation to the local system."
The financing activity comes amid growing investor scrutiny of technology companies' capital-intensive investments in artificial intelligence infrastructure. Market strategists have noted a shift away from expensive tech names as questions persist about the timeline for AI investments to generate returns. This caution has particularly affected software and services stocks.
Wall Street opened lower on Monday, with the Nasdaq Composite down 0.34% early in the session. The broader pullback in growth-oriented stocks reflects ongoing sensitivity to interest rate expectations and shifting risk sentiment.
Market participants are now looking ahead to key economic data releases later this week, including Wednesday's January jobs report and Friday's consumer price index reading. These figures could significantly influence Federal Reserve policy expectations and, consequently, the valuation environment for technology stocks like Alphabet.
