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  • Alphabet and SpaceX are reported to be in advanced talks to launch Google data centers into orbit.

  • The potential partnership would combine Alphabet’s cloud and AI capabilities with SpaceX’s satellite launch and Starlink infrastructure.

  • The move would aim to create space based data centers that could support global connectivity and new types of cloud services.

For investors watching Alphabet (NasdaqGS:GOOGL), this potential partnership comes at a time when the stock trades at $388.64 and has logged a 146.1% return over the past year. Returns of 236.3% over 3 years and 242.4% over 5 years indicate that the company has rewarded long term holders during this period.

If orbital data centers progress beyond talks, they could matter for how Alphabet positions its cloud and AI infrastructure against large peers. For now, the key question for investors is whether such a project, if agreed, becomes a meaningful part of the business or remains an experimental edge offering.

Stay updated on the most important news stories for Alphabet by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Alphabet.

NasdaqGS:GOOGL Earnings & Revenue Growth as at May 2026 NasdaqGS:GOOGL Earnings & Revenue Growth as at May 2026

2 things going right for Alphabet that this headline doesn’t cover.

Quick Assessment

  • ⚖️ Price vs Analyst Target: At US$388.64, Alphabet trades about 9.2% below the US$427.89 analyst target, within the one standard deviation range of US$393.72 to US$462.05.

  • ❌ Simply Wall St Valuation: Shares are trading about 16.7% above the platform’s estimated fair value, so the stock screens as overvalued on that model.

  • ✅ Recent Momentum: A 22.5% return over the last 30 days points to strong short term momentum into this orbital data center story.

There is only one way to know the right time to buy, sell or hold Alphabet. Head to Simply Wall St’s company report for the latest analysis of Alphabet’s Fair Value..

Key Considerations

  • 📊 Orbital data centers could, if executed, extend Alphabet’s cloud reach and support AI workloads closer to global users.

  • 📊 Watch how much capital Alphabet allocates to the project, any early customer wins and whether SpaceX’s Starlink integration is highlighted as a differentiator.

  • ⚠️ With one flagged major risk linked to non cash earnings and shares already 16.7% above estimated fair value, investors may want to assess how much optimism is already in the price.

Dig Deeper

For the full picture including more risks and rewards, check out the complete Alphabet analysis. Alternatively, you can visit the community page for Alphabet to see how other investors believe this latest news will impact the company’s narrative.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include GOOGL.

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