Alphabet Inc. (NASDAQ:GOOGL) reported stronger-than-expected first-quarter earnings, driven by a surge in advertising revenue and a massive $8 billion boost from its investment in SpaceX. According to Bloomberg, the gain stems from unrealized profits on “non-marketable equity securities,” with sources identifying SpaceX as the primary contributor.
Alphabet has been a key investor in Elon Musk’s private space company since 2015, when it joined Fidelity Investments in a $1 billion round that secured a combined 10% stake in SpaceX. Recent reports have valued SpaceX at around $350 billion, placing it among the world’s most valuable private companies.
The tech giant’s net income soared 46% year-over-year to $34.54 billion in Q1, fueled by strong performance in its core digital advertising business and gains from equity holdings. The SpaceX windfall highlights the growing value of Alphabet’s strategic investments outside its traditional internet and AI-focused portfolio.
SpaceX, known for its contracts with NASA and its global Starlink satellite internet service, continues to expand its commercial and government footprint. Unlike Tesla (NASDAQ:TSLA), which has faced increasing public scrutiny due to Musk’s controversial persona, SpaceX remains relatively shielded from such backlash.
Alphabet’s earnings surprise reinforces its position as a dominant force in tech and innovation investing. With the market taking note of the upside from high-growth private equity assets like SpaceX, investors may increasingly view Alphabet as more than just an ad-revenue powerhouse. As SpaceX inches closer to a potential IPO, Alphabet’s early bet could prove to be one of the most lucrative tech investments of the decade.
