Alphabet's $11 Billion SpaceX Loss Overshadows Strong Cloud Growth
Alphabet reported a $26.17 billion net profit for Q3, down 25% year-over-year, after an estimated $11 billion unrealized loss on its SpaceX investment dragged down otherwise strong operational results. The loss stemmed from SpaceX shares falling from roughly $171 to $151 during the quarter, creating a pre-tax impairment on Alphabet's 550 million shares. Despite this, operating profit rose 30% to $40.6 billion, and Google Cloud revenue doubled to $30.7 billion, though adjusted earnings of $2.67 per share missed Wall Street's $3.02 forecast. Alphabet's capital expenditures hit $51.4 billion, more than double last year, pushing free cash flow to negative $9.07 billion. Management guided 2026 capex to $195-$205 billion, and shares fell 10% in after-hours trading amid concerns over AI spending and slowing search ad growth.