Alphabet’s Impressive Financial Report: Has Its 2015 Investment in SpaceX Increased in Valuation by 35 Times?

Google’s Parent Company Alphabet Reports First Quarter Earnings

Google’s parent company Alphabet has released its first quarter earnings report, revealing a net income increase to $34.5 billion. Of this amount, as much as $8 billion in unrealized gains comes from investments in private companies. According to Bloomberg, the company in question is Elon Musk’s Space Exploration Technologies Corp, commonly known as SpaceX.

Investment in SpaceX in 2015, Valuation has Increased 35 Times

According to a Bloomberg report from 2015, Google, in conjunction with Fidelity Investments, invested $1 billion in SpaceX, collectively holding approximately 10% of the company. At that time, SpaceX and its investors agreed to purchase shares from insiders, with the company’s valuation estimated at about $10 billion. By the end of last year, SpaceX’s valuation had soared to $350 billion.

(NASA’s New Director Helps SpaceX’s Progress: How Should SpaceX’s Increased Valuation be Invested?)

As of the quarter ending in March, Alphabet’s net income has risen to $34.5 billion, or $2.81 per share. Although the profit exceeded Wall Street’s average forecast of $2.01 per share, the earnings include $8 billion in “unrealized gains related to our investments in private companies’ non-public equity securities.” Alphabet has not disclosed the name of this company.

Google’s investment from years ago now appears to have risen 35 times in value, and while the name has not been confirmed, it is not impossible to deduce.

Google’s Commitment to Internet Accessibility and Collaboration with SpaceX

Google has long been dedicated to expanding internet access, particularly in remote mountainous areas, oceans, and regions where it is challenging to lay fiber optics. Project Loon in 2015 aimed to provide internet connectivity to remote areas through high-altitude balloons; although it was eventually terminated, the subsequent Project Taara continued this concept by using beams to provide internet connectivity, leading to its independence this year and partnerships with telecom operators such as T-Mobile and Vodafone to test and deploy the technology.

Moreover, Google Cloud has maintained collaboration with SpaceX, allowing the setup of Starlink ground stations within Google’s data centers to offer low-latency, high-speed, and secure internet connectivity.

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