Alphabet's Reported $112 Billion Profit Included a $94 Billion Paper Gain From SpaceX. Here's What the Company Actually Earned.
During the second quarter, Alphabet reported 300% growth in net income.
Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) investment in SpaceX has grown into a significant financial highlight for the company. A decade ago, Google injected $900 million into SpaceX, believing in the potential of satellite connectivity. At that time, SpaceX's value was estimated at around $12 billion, translating to Google's stake of approximately 7.5%.
The venture aimed to bolster SpaceX's focus on reusable launch technology and the early stages of its Starlink constellation. This interest in global internet access resonated with Google's objectives. Despite the initial financial commitment, the full extent of Alphabet's earnings from this investment has only recently come to light.
The company's financial profile now bears the weight of a $94 billion paper gain stemming from this SpaceX partnership. Although not reflected in Alphabet's reported profits, this unrealized gain has undeniably amplified the company's overall financial standing.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
