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Investing.com-- Alphabet Inc’s (NASDAQ:GOOGL) first quarter profit saw an $8 billion boost from unrealized gains on an investment in SpaceX, Bloomberg reported on Thursday, citing a person with knowledge of the matter.
The company has been a major investor in SpaceX since at least 2015, when it had joined Fidelity Investments to pour $1 billion into a combined 10% stake in the space firm, the Bloomberg report said.
Reports from December showed SpaceX valued at about $350 billion, making it one of the most valuable private firms in the world.
Alphabet clocked substantially stronger-than-expected first quarter earnings on Thursday, as the company benefited from increased advertising revenues. Its net income surged 46% to $34.54 billion, with $8 billion coming from unrealized gains on an investment in “non-marketable equity securities,” which Bloomberg said was SpaceX.
SpaceX is a major beneficiary of government contracts, specifically from Nasa. The company also offers direct-to-consumer services through its satellite-based internet service Starlink.
Compared to Tesla (NASDAQ:TSLA), SpaceX appears to be largely insulated from growing controversy and public ire over CEO Elon Musk.