Alphabet Inc. is set to announce substantial unrealized gains stemming from SpaceX's recent stock sale, which has significantly increased the rocket company's valuation. The source reports that this development is expected to positively impact Alphabet's financial standing as it continues to invest in innovative ventures.
SpaceX Stock Sale Elevates Valuation
The recent stock sale of SpaceX, priced at $421 per share, has elevated the company's valuation to approximately $800 billion. This marks a notable increase from previous sales and is anticipated to enhance the value of Alphabet's investment in the space exploration firm. Alphabet has maintained a stake in SpaceX since at least 2015, when it, along with Fidelity Investments, invested $1 billion for roughly 10% ownership.
Impact on Alphabet's Earnings
In the past, similar gains from SpaceX's valuation increases have significantly contributed to Alphabet's earnings, with an $8 billion gain reported last year. As Alphabet prepares to release its upcoming quarterly report, investors are keenly watching for indications of this accounting boost. This could further solidify the company's financial performance.
In a contrasting development, the Asian financial market has seen a surge in the issuance of structured equity notes, surpassing $200 billion this year, driven by wealthy investors seeking stable returns. For more details, see more.
