SpaceX Stock Drops 40% While Alphabet Reports Record Growth
Alphabet Inc. reports record search and cloud revenue as SpaceX stock falls 40% from its June IPO peak.
The market valuation of Space Exploration Technologies Corp. has declined 40% from its peak of $225 following a June 2026 initial public offering. The company currently holds a market capitalization of $1.83 trillion, though analysts suggest the stock is overvalued with a price-to-sales ratio of 57.
In contrast, Alphabet Inc. reported strong third-quarter 2026 financial results driven by AI growth. Google Search revenue reached a record $63.3 billion, and Google Cloud revenue grew 103% year-over-year to $30.7 billion, supported by a $561 billion order backlog. Alphabet also received a one-off earnings boost of over $90 billion due to the fair value recognition of its investment in SpaceX after the aerospace company went public.
To support its AI workloads, Alphabet continues its partnership with Broadcom Inc. to design and fabricate tensor processing unit chips for its data centers.
