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Google Just Made $98 Billion on Its Investments
Business Insider • • business
Key Points:
- Alphabet disclosed that its stake in SpaceX is now worth $94.1 billion, explaining most of the nearly $100 billion in unrealized investment gains it previously reported without detail.
- Google invested in SpaceX in 2015 when the company was valued at around $12 billion, resulting in a 133x return following SpaceX's recent $1.5 trillion valuation after its IPO.
- Besides SpaceX, Alphabet also holds investments in AI-related companies Anthropic and Databricks, valued at $895 billion and $188 billion respectively.
- Despite these lucrative investments, analysts focused on Google's rising capital expenditures and AI competition during its earnings call, as the company delays launching a major new AI chatbot.
- Google's revenue grew nearly 25% year-over-year, driven by strong advertising and cloud sales, with many analysts remaining optimistic about the company's fundamentals despite short-term challenges.
