What Caused Alphabet's USD 8.7 billion Accounting Paper Loss On Equity Investments?🌟🌟🌟USD 8.7 billion accounting …

What Caused Alphabet's USD 8.7 billion Accounting Paper Loss On Equity Investments?

🌟🌟🌟USD 8.7 billion accounting paper loss on equity investments seems massive. But on closer look, this is due to the standard GAAP accounting rules that mandate $Alphabet(GOOGL.US)must report all unrealised paper gains or losses on its income statement every quarter.

Alphabet is the single largest institutional shareholder of $SpaceX(SPCX.US)with 551.2 million shares, outside of Elon Musk himself. Long before Elon Musk became famous, Alphabet partnered with Fidelity to inject USD 1 billion into SpaceX. Alphabet alone provided an estimated USD 900 million.

When SpaceX shares slipped from their June high of USD 170.86 down toward the USD 143 range by the end of September, it triggered an astronomical USD 8.7 billion non cash paper loss for Alphabet.

The reality is Alphabet's underlying core operating income actually rose 30%. The business did not suffer. Its net bottom line was simply bruised by the volatile swings of Elon Musk's rocket ship.

In June 2026, Google signed a multi year agreement to pay SpaceX USD 920 million per month to access large scale AI computing facility and Nvidia GPUs from SpaceX's Colossus data center infrastructure.

Google and SpaceX are continuing to co-operate in space based machine learning & orbital data center concepts. This includes Google's Project Suncatcher initiative to test TPU machine learning infrastructure and laser link constellations in space.

By maintaining this huge anchor position in SpaceX , Alphabet has essentially hedged the future of global communications not only on Earth, but in Space too.

Exciting times are ahead for both Alphabet and SpaceX.

Dear Fellow Investors, Do you agree that the recent selloff of Alphabet is a great opportunity to buy the company? The current P/E ratio is only 14.7x.

@Captain Leo