TLDR
- SpaceX’s latest offer prices shares at $421, valuing the company at around $800 billion
- Google parent company Alphabet has a stake from the 2015 investment, when it participated in a $1 billion funding round
- Alphabet previously booked an unrealized profit of $8 billion from SpaceX in 2025
- SpaceX’s higher valuation will likely show up as a new accounting gain in Alphabet’s fourth-quarter earnings
- Wall Street maintains a Strong Buy rating on GOOGL with upside potential ahead
Alphabet will benefit from a big jump in SpaceX’s private market valuation. The rocket company’s recent stock sale valued the company at approximately $800 billion. Shares sold for $421 each in the offering.
Alphabet Inc., GOOGL
This represents a quantum leap from SpaceX’s previous valuation of $350 billion as of the end of 2024. For Alphabet, the increase means a higher book value for its investment stake. That translates into another potential profit boost when the company reports results.
Google invested in SpaceX almost a decade ago. In 2015, it partnered with Fidelity Investments on a $1 billion funding round. The two companies together represented about 10% of the aerospace company at the time.
Alphabet is silent on SpaceX’s current ownership percentage. The company does not disclose individual private investments by name in regulatory filings. But valuation changes at SpaceX have historically been reflected in Alphabet’s quarterly results.
Previous gains from SpaceX have already boosted profits
This isn’t the first time SpaceX has helped improve Alphabet’s results. In April, the company reported an unrealized gain of $8 billion from an investment in an unnamed private company. Market observers widely understood that this was SpaceX.
Those gains came after SpaceX’s late-2024 bid at a $350 billion valuation. The accounting boost helped Alphabet beat Wall Street earnings expectations for the March quarter. These types of gains appear in financial statements as unrealized gains on non-tradable stocks.
The profits are paper profits rather than actual cash. But they still count towards the reported net income for the quarter. When the value of a private company rises, Alphabet increases its investment to reflect the new price.
What investors should expect
With SpaceX now valued at $800 billion, the calculation points to another substantial gain for Alphabet. Investors will get clarity when the company reports fourth-quarter and full-year 2024 results in early February. Any increase in SpaceX’s book value should show up in these financials.
Alphabet’s core businesses remain focused on search advertising, YouTube, cloud services and AI development. The SpaceX investment represents a side bet that delivers outsized returns. But it doesn’t change the company’s fundamental business model or growth engines.
Analysts remain bullish on GOOGL stock. The stock has a Strong Buy consensus rating with 29 Buy recommendations and seven Hold ratings. The average analyst price target of $323.64 implies a modest upside from current trading levels.
Google declined to comment on its SpaceX holdings. Company policy prohibits discussing individual private investments. However, the updated valuation will become apparent through required financial disclosures when Alphabet files its next quarterly report with regulators.
SpaceX continues to expand its Starlink satellite internet service and advance rocket technology. The company’s valuation growth reflects strong business performance and investor demand for exposure to the aerospace industry.
#Alphabet #GOOGL #Stocks #SpaceX #Valuation #Rise #Means #Profits #Google #Blockonomi