Alphabet Drives Record Q2 Earnings Growth in S&P 500
Alphabet (GOOGL) was by far the largest contributor to second-quarter earnings growth of the S&P 500, according to FactSet. The company reported earnings per share of $9.11—well above Wall Street's estimate of $2.90—and its unrealized gains on equity investments significantly boosted overall index performance. Alphabet’s stake in SpaceX alone contributed a massive gain due to the rocket firm’s June IPO, which valued Alphabet’s 4% ownership at around $94 billion compared to an initial investment under $1 billion. However, these gains are currently non-tradable and restricted until late next year. Despite this limitation, Alphabet's performance lifted S&P 500 earnings growth from 25.9% to a robust 37.9% for the quarter. Alphabet also holds a significant stake in AI firm Anthropic, which is expected to go public soon and could further increase its value. While these gains reflect Alphabet's investment prowess rather than core business performance, they have had a substantial impact on S&P 500 earnings growth.
