Google in Talks with SpaceX for Rocket Launch Deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy GOOGL?
Alphabet Inc's stock rose by 3.78% as it reached a 52-week high.
The increase in stock price is attributed to Alphabet's discussions with SpaceX to establish a rocket launch deal, which aims to enhance its data processing capabilities through orbital data centers in space. This strategic move is expected to bolster its cloud services and position the company favorably in the competitive tech market.
This collaboration with SpaceX not only signifies Alphabet's commitment to advancing space technology but also highlights its potential to create new revenue streams and maintain its leadership in the tech industry.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to fall
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 401.070
Low
305.00
Averages
374.25
High
400.00
Current: 401.070
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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- Investment Plan Support: This bond issuance is Alphabet's first in yen, aimed at supporting its capital expenditure plan of up to $190 billion, particularly for significant investments in artificial intelligence, further solidifying its market leadership.
- Strong Demand Reflection: According to Mizuho Securities, the bond issuance saw robust demand from both domestic and international investors, surpassing the previous record of 430 billion yen set by Warren Buffett's Berkshire Hathaway in 2019, indicating strong market confidence in Alphabet.
- Diverse Debt Structure: The bonds have maturities ranging from 3 to 40 years, with coupons between 1.965% and 4.599%, providing Alphabet with flexible financing options to address future financial needs and market changes.
See More
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- Regulatory Environment Shift: The hearing aims to examine the responsibilities of tech companies regarding data privacy, content management, and market competition, potentially leading to stricter regulations that could impact their operational models.
- Industry Impact Assessment: As the hearing approaches, tech companies may need to adjust their policies and practices to address potential legal and public opinion pressures, which could affect their market performance and investor confidence.
- Increased Public Attention: The upcoming hearing reflects public concern over the influence of tech companies, potentially prompting these firms to adopt more proactive measures in transparency and social responsibility to maintain their brand image.
See More
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- Arista Networks Upgrade: Raymond James upgraded Arista Networks from market perform to outperform, anticipating improved sales growth in 2027 and beyond, particularly as the company expands into AI backend and campus applications, enhancing its market share.
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See More
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- Investment Return Potential: Alphabet's 6% stake in SpaceX could be worth approximately $100 billion if SpaceX goes public at a $2 trillion valuation, representing a substantial return on investment for Alphabet.
- Energy and Land Use: The proposed orbital data centers would be powered by solar energy, alleviating land use concerns associated with traditional data centers while addressing the growing demand for AI computing.
- Future Development Outlook: With data center demand projected to increase by 165% by 2030 and Alphabet's capital expenditures reaching $190 billion, the company is signaling a long-term strategic investment in AI infrastructure.
See More
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- High-Level US-China Meeting: The meeting between US President Trump and Chinese President Xi Jinping highlighted tech cooperation, with executives from Nvidia, Tesla, and Apple present, indicating a strong American interest in the Chinese market.
- Absence of Chip Export Controls: Despite Nvidia CEO Jensen Huang's presence, discussions on chip export controls were notably absent, which could impact the sales of Nvidia's H200 chips in China, reflecting the complexities of US-China relations in high-tech sectors.
- Rare Earth Minerals Negotiations: Both sides expressed a willingness to cooperate on access to rare earth minerals, where China holds a dominant market position, with hopes to extend existing trade agreements to ensure the US secures critical resources and enhances supply chain resilience.
- Future Negotiation Outlook: Ongoing negotiations on sensitive topics like rare earth minerals are expected to continue into the summer, and if Xi visits the US in September, these issues may resurface, highlighting potential opportunities for economic collaboration between the two nations.
See More
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- Core Holding Position: Although the exact stake size was not disclosed, Ackman referred to his investment in Microsoft as a 'core holding,' indicating a long-term bullish outlook, particularly regarding the company's competitiveness in AI and cloud computing.
- Market Reaction Analysis: Microsoft's shares have fallen over 26% since reaching a record high in July 2025, primarily due to market concerns about the returns on its AI investments; Ackman believes this excessive worry provides a favorable entry point for investors.
- R&D Investment Outlook: Ackman expressed encouragement regarding Microsoft's R&D efforts with the AI assistant Copilot embedded in M365, asserting that CEO Nadella's direct involvement will enhance product velocity and customer adoption, further solidifying Microsoft's market position.
See More
