Michael Burry, the hedge fund manager and the real-life inspiration for the movie "The Big Short", responded on social media regarding Alphabet (GOOGL.US) which is seeking to issue century bonds.

The last similar event occurred in 1997 when the mobile phone manufacturer Motorola issued bonds, he said. At that time, Motorola was among the top 25 companies in the US by market cap and revenue, with its brand ranking even ahead of Microsoft (MSFT.US), said Burry.

Burry pointed out that in the years following the bond issuance, Motorola's status gradually subsided and was surpassed by competitors. Today, it ranks 232nd in market cap, with annual sales of only USD11 billion.

In his post, Burry believed that the threats in face of Google's classic search technology today are real and potentially even greater than the crisis Motorola faced in the mid-1990s when hardware technology was considered a more reliable competitive advantage than software.
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AASTOCKS Financial News
Website: www.aastocks.com

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