Alphabet's Investment in SpaceX and IPO Prospects
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy GOOGL?
Source: NASDAQ.COM
- Investment Background: Alphabet has invested in SpaceX since 2015 alongside Fidelity, initially contributing $900 million when SpaceX was valued at around $12 billion, holding approximately 7%, and now reduced to 6.11%, still a significant stake.
- IPO Expectations: SpaceX plans to IPO this summer with an anticipated valuation of $1.75 trillion, potentially the highest in IPO history, generating substantial investor interest, with Alphabet's investment potentially worth around $105 billion if successful.
- Partnership Dynamics: EchoStar, a key partner of SpaceX, plans to sell spectrum licenses and is expected to gain millions of SpaceX shares, with the agreement awaiting regulatory approval, and the market remains optimistic about its success.
- Investment Options: For average investors, investing in Alphabet is the best way to gain indirect exposure to SpaceX, although waiting for SpaceX's IPO is the most direct route, Alphabet's investment offers a relatively stable return potential amidst volatility.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 349.940
Low
305.00
Averages
374.25
High
400.00
Current: 349.940
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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