Alphabet's (GOOGL) latest quarterly 13F filing, submitted November 6, revealed a new position in Qualcomm (QCOM) worth approximately $548 million, while confirming that the company still holds a large stake in SpaceX whose value has declined sharply. The 13F is a quarterly disclosure that institutional investment managers file with the U.S. Securities and Exchange Commission, listing holdings as of the prior quarter's close — in this case September 30. Because the report arrives weeks after that date, it offers a window into how one of the search giant's most valuable holdings performed during a volatile three-month stretch, rather than a real-time snapshot.

Markets reacted on Monday. Alphabet stock rose 0.78%, Qualcomm climbed 5.52%, and SpaceX (SPCX) gained 8.62%.

SpaceX Stake Shrinks in Value

According to the filing, Alphabet holds about 555 million units of SpaceX stock, valued at $83.7 billion as of September 30. The company closed that day at $150.86, down from $170.86 at the end of June — a decline of roughly 11.7% over the quarter.

Alphabet actually increased its holding during the period, adding roughly 3.85 million units to lift its total from 551.2 million. Despite the larger position, its value slid from $94.2 billion in June: more shares, a lower price, and a lower overall value.

Alphabet first invested about $900 million in SpaceX in 2015, so the long-term gain remains substantial. The stake now accounts for roughly 95% of the holdings reported in the 13F, which lists only public positions and excludes Alphabet's private bets.

The Stake Weighs on Earnings

Third-quarter results showed the cost of the valuation drop. Alphabet booked an $8.7 billion loss on equity securities, compared with a $10.7 billion gain a year earlier.

Under U.S. accounting rules, equity holdings are marked to market each quarter, so changes in value flow through reported earnings even when no shares are sold. That is why an unrealized move in the SpaceX stake landed directly in Alphabet's reported results this quarter.

Chief Financial Officer Anat Ashkenazi said on the earnings call that other income and expense was negative $8.2 billion, driven mostly by the unrealized SpaceX loss. The hit reduced diluted earnings by $0.55 per share. Alphabet earned $2.12 per share in the quarter, down from $2.87 a year ago.

The losses are on paper only, as Alphabet sold no shares. It also cannot sell freely for now: about $75.2 billion of its SpaceX stock is subject to short-term sale restrictions, and the filing gives no end date for those limits.

Qualcomm Joins the Portfolio

The new Qualcomm position, worth about $548 million, ranks sixth in the filing. Alphabet has not explained the purchase, and a 13F does not disclose the reasoning behind trades.

The two companies already overlap in several areas. Qualcomm chips power nearly all high-end Android phones as well as Google's Googlebook laptops. In 2024, the companies teamed up on automotive AI chips, and they are now working to bring Gemini Intelligence to Snapdragon-powered devices.

There is also a SpaceX connection. Qualcomm signed a multiyear deal to supply cellular equipment for Starlink Mobile base stations, with deployments starting in 2027.

Qualcomm's most recent quarter was softer. Revenue fell 8% to $10.3 billion, and handset chip revenue dropped 26% to $5.14 billion.

By comparison, the new stake is under 1% of Alphabet's SpaceX position and roughly 0.2% of Alphabet's $265.1 billion in cash and marketable securities.

Alongside the Qualcomm purchase, Alphabet trimmed its holdings in Ethos Technologies (LIFE), Revolution Medicines (RVMD), and Freshworks (FRSH), and fully exited GitLab (GTLB), Spero Therapeutics (SPRO), and Autolus Therapeutics (AUTL).

Alphabet's next 13F filing is due in February, and it will cover positions as of December 31 — the first update on how the SpaceX stake's value and the new Qualcomm position stood at year-end.

Source: CoinCentral