Alphabet Sheds Its 'Black Hole' Label With $150 Billion In 'Hidden Assets' From SpaceX And Anthropic, Says Expert

Alphabet is shedding its “black hole” label tied to Waymo and “Other Bets,” with an expert arguing the company is instead sitting on roughly $150 billion in overlooked, unrealized value from long-term venture investments in SpaceX and Anthropic.

Cause: “Hidden assets” behind the “black hole” narrative

Christopher Davis, founding partner of Hudson Valley Partners, said the market has often viewed Alphabet’s spending as money being “lobbing” into a “black hole” of Waymo. But Davis argued that a closer look shows “massive, unrealized value” on Alphabet’s balance sheet, reflecting how big tech firms can hold significant “hidden assets” that investors may be underestimating.

Development: Venture investments that have grown substantially

Davis pointed to two early investments that, together, could represent about $150 billion in value:

• SpaceX: Alphabet invested about $900 million roughly a decade ago, securing an estimated 7% stake. Davis estimated the stake could now be worth more than $100 billion.
• Anthropic: Alphabet invested approximately $3 billion in Anthropic, the parent company of the Claude AI chatbot. With Anthropic’s valuation estimated at around $50 billion after recent financing rounds, Davis said Alphabet’s roughly 14% stake adds another major layer of underlying value.

“Put those two together… that’s $150 billion,” Davis said, adding that the figure is “about as much as Alphabet is planning to spend on AI-related CapEx this year.”

Market context: Investors remain sensitive to macro conditions

Despite the bullish view on Alphabet’s underlying value, Davis described the broader environment as “very much on a knife edge.” He said strong first-quarter earnings could provide a “vital lifeline” for investors who remain jittery.

Data and stock performance

The article cited the following market moves for Alphabet and broader benchmarks:

• Alphabet (GOOG): down 3.15% year-to-date
• Nasdaq Composite: down 4.95% year-to-date
• GOOG: up 22.98% over the last six months
• GOOG: up 103.65% over the year
• Tuesday close: GOOG up 2.11% to $303.93

Benzinga’s Edge Stock Rankings were also referenced, stating that GOOG shows a weak price trend in the short and medium terms but a strong trend in the long term, alongside a solid growth score.

Impact: A shift in how “Other Bets” may be viewed

For years, Alphabet’s “Other Bets” division has faced heavy scrutiny, with many investors treating the experimental segment as a capital drain. Davis argued that this pessimistic framing is changing as long-term investments mature and potentially become more valuable to shareholders.

Analysis: What could matter for big tech momentum

The article suggested that if Alphabet can fully realize value from its long-term plays—and if peers such as Microsoft can demonstrate that its Copilot investments are “paying off” without further alarming shareholders—big tech could regain momentum.