This article first appeared on GuruFocus.
Alphabet Inc (NASDAQ:GOOGL) shares rose 1.14% at 10 a.m. ET in early regular-session trading on November 12 as investors weighed Google's $10 billion commitment to buy Anthropic shares alongside next week's IPO. The move held up even as NVIDIA's CEO exit pulled the Nasdaq lower.
Warning! GuruFocus has detected 7 Warning Signs with TSLA.
Is GOOGL fairly valued? Test your thesis with our free DCF calculator.
Anthropic's amended S-1 lists Google LLC for 135,135,135 Class N shares, about $10 billion at the $74 midpoint, inside a $26 billion private placement. Anthropic plans to sell 825 million shares at $70 to $78 on Nasdaq under the symbol "ANT," with pricing expected November 18 and trading on November 19, according to CoinCentral's report on the filing.
At $78, Reuters valued Google's stake at about $139 billion against $33.3 billion invested, the report said. Google's purchase uses an option under a March 2026 financing agreement that caps its ownership at 14.99%.
That $139 billion equals about 3.9% of Alphabet's $3.61 trillion market value, so the listing matters but does not define the shares. The placement shares carry no lock-up but are restricted securities, which limits any quick sale. GuruFocus gives Alphabet a GF Score of 98/100, with a perfect profitability rank and 8/10 financial strength.
At $295.21, the shares trade 7.3% above the GF Value of $275.17, a "Fairly Valued" reading. The next test is the November 18 pricing: a deal above the range would lift the carrying value, while a weak debut could turn a paper gain into earnings noise.
