Technology
Google Debt-Risk Gauge Rises as Earnings Revive AI Debt Jitters
Key Points
Google Debt-Risk Gauge Rises as Earnings Revive AI Debt Jitters The cost of insuring against losses on Alphabet Inc.’s debt rose on Thursday as its shares plummeted, after disappointing results intensified fears that its massive bet on debt-funded AI spending may fail to pay off. The price of five-year credit default swaps on Google’s debt, which increases as investor concern grows, rose as much as 5.3 basis points to 84 basis points a year, according to ICE Data Services.
Google Debt-Risk Gauge Rises as Earnings Revive AI Debt Jitters
The cost of insuring against losses on Alphabet Inc.’s debt rose on Thursday as its shares plummeted, after disappointing results intensified fears that its massive bet on debt-funded AI spending may fail to pay off.
The price of five-year credit default swaps on Google’s debt, which increases as investor concern grows, rose as much as 5.3 basis points to 84 basis points a year, according to ICE Data Services. It’s the biggest increase since Sept. 21. Costs also rose for the likes of fellow hyperscaler Meta Platforms Inc. and chip company Broadcom Inc.