Hidden bet on SpaceX could boost Alphabet's fourth-quarter profit - media outlet
Investment in Elon Musk's aerospace business could turn into a billion-dollar paper profit for Alphabet in its upcoming quarterly report. A sharp jump in SpaceX's valuation to $800 billion will allow parent company Google to significantly improve its fourth-quarter financial results.
Details
Alphabet is preparing to record a large paper profit in its upcoming financial statements after the completion of the SpaceX investment round that valued the world's most expensive aerospace company at $800 billion, Bloomberg writes. As the agency reported late last week, the deal to sell shares to SpaceX insiders went for $421 per paper. That's a nearly twofold jump from the $212 price set at the previous investor sale in July. Musk's company's securities were trading around $263 in December 2025, according to the OTC marketplace Forge Global.
Google's parent company has been investing in SpaceX since at least 2015, when it jointly paid $1 billion with Fidelity Investments for a stake of about 10%. The tech giant has not disclosed the size of its stake to date, but changes in the value of SpaceX have already been reflected in its financial results: in April, Alphabet reported an additional $8 billion in first-quarter profits from its investment in a certain private company. Bloomberg's source claims that this company is SpaceX.
What it means for investors
Although Alphabet's business is based on online advertising and cloud services, SpaceX stock revaluation gains could boost Google's paper earnings and thus support its stock price, TipRanks notes. Alphabet is scheduled to report fourth-quarter and full-year 2025 earnings on February 3.
Alphabet shares jumped 5% after reporting first-quarter 2025 earnings as the company managed to maintain strong profitability despite record spending on artificial intelligence and global economic instability.
What Wall Street thinks of Alphabet stock
The consensus on Alphabet shares on Wall Street has become more bullish over the past three months: according to FactSet, the number of recommendations to buy (Buy and Overweight ratings) has increased from 60 to 63, while the number of recommendations to hold these securities (Hold rating) has decreased from 13 to 12. No analysts think Alphabet shares should be sold. The average target price of $334 implies a potential upside of about 8% to current quotes.
This article was AI-translated and verified by a human editor
