This 1 Company Is By Far the Largest Contributor to Second-Quarter S&P 500 Earnings Growth
Alphabet's huge earnings beat is sending S&P 500 earnings growth soaring.
Overview
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) delivered a massive earnings beat last week, and it's driving S&P 500 earnings growth to the highest level since 2021. The mega-tech company posted earnings per share of $9.11, more than three times the $2.90 expected by Wall Street.
According to FactSet, which tracks all S&P 500 financial results, Alphabet is now the largest contributor to year-over-year earnings growth for the S&P 500 for the second quarter. Without Alphabet's standout performance, earnings growth for the quarter would drop from 37.9% to 25.9%. Keep in mind that the company is just one of 500 in the index.
Details
Yet much of Alphabet's surprising earnings figure was the result of $98 billion in unrealized gains on equities it holds. (The company also posted revenue of $119.8 for the quarter, up 24% from the same quarter a year ago. ) Alphabet owns approximately 4% of Space Exploration Technologies (NASDAQ: SPCX), and that stake was valued at about $94 billion after the company's June initial public offering. That's quite a gain on its original investment in SpaceX, which was less than $1 billion.
Source
Originally published at www.fool.com.