Jul. 23 at 4:40 AM
$GOOGL Without the SpaceX and Anthropic, the actual EPS becomes
$2.85 vs.
$2.88 forecast.
Financial analysts usually subtract these massive SpaceX and Anthropic paper gains. If you leave a
$98 billion unrealized gain in the calculation, it artificially inflates Alphabet's EPS, masking the heavy cash burn and CapEx spending currently happening in Google Cloud and Search infrastructure.
If we strip out the ~
$98 billion net unrealized gain from non-marketable equity securities (which includes the Anthropic revaluation and SpaceX markup), Alphabet’s adjusted results look dramatically different on a GAAP vs. non-GAAP basis:
Earnings Per Share (EPS) Comparison
Reported GAAP EPS:
$10.82 (Includes the ~
$98B unrealized paper gain on equity investments)
Operating / Core Business EPS:
$2.85 (Strips out non-marketable equity markups)
Wallstreet is closely looking at CapEx and profit margin more closely than ever before. Nevertheless, I bought the discount.
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