Alphabet Set for Fresh Paper Gains After SpaceX Valuation Surge

Alphabet Inc. appears poised to record another meaningful paper profit following a new share sale by SpaceX that places a significantly higher value on the private aerospace company. The latest tender offer suggests SpaceX is now worth roughly $800 billion, a level that would translate into a sizable uplift for Alphabet’s long-held stake in Elon Musk’s space and satellite venture.

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According to Bloomberg, the insider transaction priced SpaceX shares at $421 apiece, a notable increase from valuations implied by earlier secondary-market deals. That higher price point effectively resets expectations for the company’s worth and is likely to raise the book value of Alphabet’s investment when it is reflected in future financial statements.

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Google’s parent company has been a backer of SpaceX for nearly a decade. Alphabet first invested in the company in 2015, when it teamed up with Fidelity Investments in a $1 billion funding round. At the time, the two investors collectively acquired an estimated 10% stake, giving Alphabet early exposure to what has since become one of the most valuable private companies in the world.

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Alphabet has consistently declined to provide details about individual private investments, and that stance has not changed. A Google spokesperson reiterated the company’s long-standing policy of not commenting on or disclosing specifics related to private holdings, leaving investors to infer the financial impact from broader disclosures.

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This would not be the first time a jump in SpaceX’s valuation has meaningfully influenced Alphabet’s earnings.

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Earlier this year, the company reported a substantial boost tied to the same investment. In April, Alphabet revealed an $8 billion unrealized gain connected to its stake in a private firm, which market observers widely identified as SpaceX. That revaluation followed a tender offer late last year that pegged SpaceX’s value at around $350 billion.

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The accounting gain proved material. It helped push Alphabet’s net income for the March quarter above analysts’ forecasts, offering a reminder that shifts in the valuation of private investments can have a noticeable impact on reported results, even though they do not affect cash flow.

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Because Alphabet does not itemize private holdings in its regulatory filings, investors typically see the effects of these valuation changes through broader line items. In previous quarters, adjustments tied to SpaceX have appeared under “unrealized gains on non-marketable equity securities,” a category that captures fluctuations in the estimated value of private assets.

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With the latest tender offer implying a far higher valuation than before, market participants are now looking ahead to Alphabet’s upcoming earnings report. Another sharp increase in SpaceX’s assessed worth could once again translate into an accounting gain, potentially providing a lift to headline profit figures.

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For investors, the situation highlights an often-overlooked aspect of Alphabet’s financial profile. Beyond its core advertising, cloud, and artificial intelligence businesses, the company holds strategic stakes in high-profile private firms whose valuations can swing significantly.

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When those values rise, as appears to be the case with SpaceX, Alphabet stands to benefit on paper a factor that can influence earnings and sentiment, even if it remains largely behind the scenes.

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