"AI funding. It is all about AI and data center funding and things of that nature. The thing that is kind of scary about this, and you will remember this because you were around a generation ago on Wall Street while I was, is that the last company to do a 100-year bond was Motorola (NYSE: MSI) in 1997. That was just as the dot-com boom was starting to explode higher, which was obviously a harbinger of not good things to come."
"They have gotten to the point where you cannot fund all of this with private credit and you cannot just move money from one pocket to another. I think Wall Street and the broader economic and financial community are starting to look at everything very carefully. That is why we have had this huge rotation out of stocks. One of the top sectors so far in 2026 is energy. That is a clear rotation because it horribly underperformed last year and the year before that."
Alphabet issued a 100-year bond to finance AI initiatives and data center spending. The bond choice echoes Motorola's 1997 100-year issuance, which preceded Motorola's decline. Alphabet’s funding needs exceed private credit capacity and require large-scale capital. Market participants and Wall Street are scrutinizing such moves, contributing to a significant rotation out of stocks. Energy has been one of the top-performing sectors in 2026 after prior underperformance. Growing investor caution is evident, and some investors are taking defensive positions, including long puts on companies like Nvidia and Palantir and other concentrated trades.
Read at 24/7 Wall St.
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