Alphabet's SpaceX Stake Surges to Nearly $100 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy GOOG?
Source: Benzinga
- Remarkable ROI: Alphabet's $900 million investment in SpaceX in 2015 has ballooned to nearly $100 billion, showcasing the immense potential of this stake, which is now considered one of the most successful trades in the company's history.
- Merger Proposal Impact: Elon Musk's proposal to merge SpaceX with xAI could lead to a combined valuation of $1.25 trillion, further enhancing Alphabet's investment value, potentially pushing its stake worth to around $90 billion.
- Unrealized Gains Realized: In early 2025, Alphabet reported an $8 billion unrealized gain due to SpaceX's soaring valuation, marking a significant financial return from its investment in the space and AI sectors.
- Underappreciated Market Potential: While investors typically focus on Alphabet's search and advertising businesses, its stake in SpaceX could serve as a powerful catalyst for stock price appreciation, especially with a potential IPO on the horizon.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOG is 336.08 USD with a low forecast of 255.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 333.340
Low
255.00
Averages
336.08
High
400.00
Current: 333.340
Low
255.00
Averages
336.08
High
400.00
About GOOG
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.
Ark Investment Continues to Increase Alphabet Holdings Ahead of Earnings
- Increased Holdings: Ark Investment has been steadily increasing its position in Alphabet ahead of the company's earnings report, with ARK Autonomous Technology & Robotics ETF (ARKQ) purchasing 11,168 shares and ARK Space & Defense Innovation ETF (ARKX) adding 1,422 shares on February 3, indicating strong confidence in the company's future performance.
- Current Holdings: As of now, Alphabet ranks as the 10th largest holding in ARKQ with 195,758 shares valued at nearly $66.7 million, and the 14th largest in ARKX with 65,710 shares worth about $22.4 million, reflecting Ark's significant investment in Alphabet.
- Earnings Expectations: Alphabet is set to report its Q4 earnings on February 4 after market close, with Wall Street expecting an EPS of $2.64 and revenue of $111.48 billion, implying a year-over-year growth of 15.5%, which will have a crucial impact on its stock price.
- Market Performance: Over the past year, Alphabet's shares have surged by 68.8%, significantly outperforming the broader market, indicating strong investor confidence in its growth potential, particularly in the AI and cloud computing sectors.
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- Personalized Recommendations Drive Engagement: Google TV aggregates over 400,000 shows and 10,000 apps, allowing Teads to enhance user experience through personalized recommendations, thereby increasing ad click-through rates and user engagement.
- Positive Market Reaction: Following the announcement, Teads' stock surged over 25% in premarket trading, reflecting investor optimism about the partnership, with market sentiment shifting from 'bearish' to 'bullish'.
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- Cautious Market Reaction: Following Alphabet's announcement, U.S. stocks are set for a cautious opening, with the SPDR S&P 500 ETF down 0.6%, reflecting investors' risk-off sentiment towards tech stocks.
- Increased Industry Volatility: Analysts noted that recent heavy selling in AI and software has heightened volatility across the tech sector, with market participants appearing to sell at the first sign of danger, which may impact Alphabet's market performance.
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- Concentrated ETF Holdings: As one of the most widely held stocks in the ETF landscape, Alphabet's price fluctuations will directly impact the performance of heavily allocated ETFs, prompting investors to reassess their portfolios, particularly in the communication services sector.
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- Remarkable ROI: Alphabet's $900 million investment in SpaceX in 2015 has ballooned to nearly $100 billion, showcasing the immense potential of this stake, which is now considered one of the most successful trades in the company's history.
- Merger Proposal Impact: Elon Musk's proposal to merge SpaceX with xAI could lead to a combined valuation of $1.25 trillion, further enhancing Alphabet's investment value, potentially pushing its stake worth to around $90 billion.
- Unrealized Gains Realized: In early 2025, Alphabet reported an $8 billion unrealized gain due to SpaceX's soaring valuation, marking a significant financial return from its investment in the space and AI sectors.
- Underappreciated Market Potential: While investors typically focus on Alphabet's search and advertising businesses, its stake in SpaceX could serve as a powerful catalyst for stock price appreciation, especially with a potential IPO on the horizon.
See More
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- Potential Beneficiaries: Broadcom, a partner of Alphabet, is likely to benefit from this investment, with its shares rising 2% in premarket trading on Thursday, reflecting market optimism about its collaboration on Google's custom tensor processing units.
- Other Beneficiaries: Nvidia and AMD may also gain from Alphabet's spending plans, although both saw declines in premarket trading on Thursday, indicating market caution regarding their roles in cloud computing and AI demands.
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See More
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- Increased Holdings: Ark Investment has been steadily increasing its position in Alphabet ahead of the company's earnings report, with ARK Autonomous Technology & Robotics ETF (ARKQ) purchasing 11,168 shares and ARK Space & Defense Innovation ETF (ARKX) adding 1,422 shares on February 3, indicating strong confidence in the company's future performance.
- Current Holdings: As of now, Alphabet ranks as the 10th largest holding in ARKQ with 195,758 shares valued at nearly $66.7 million, and the 14th largest in ARKX with 65,710 shares worth about $22.4 million, reflecting Ark's significant investment in Alphabet.
- Earnings Expectations: Alphabet is set to report its Q4 earnings on February 4 after market close, with Wall Street expecting an EPS of $2.64 and revenue of $111.48 billion, implying a year-over-year growth of 15.5%, which will have a crucial impact on its stock price.
- Market Performance: Over the past year, Alphabet's shares have surged by 68.8%, significantly outperforming the broader market, indicating strong investor confidence in its growth potential, particularly in the AI and cloud computing sectors.
See More
Teads Partners with Google TV to Expand Advertising Opportunities
- Enhanced Advertising Opportunities: Teads' partnership with Google TV positions brand ads as the first image users see when turning on their devices, significantly increasing brand visibility, particularly in the U.S. and U.K. markets.
- Personalized Recommendations Drive Engagement: Google TV aggregates over 400,000 shows and 10,000 apps, allowing Teads to enhance user experience through personalized recommendations, thereby increasing ad click-through rates and user engagement.
- Positive Market Reaction: Following the announcement, Teads' stock surged over 25% in premarket trading, reflecting investor optimism about the partnership, with market sentiment shifting from 'bearish' to 'bullish'.
- Global Coverage Expansion: Since launching the CTV HomeScreen in 2023, Teads has executed over 4,000 advertising campaigns globally, reaching more than 500 million devices, showcasing its substantial market impact.
See More
Alphabet Expects 2026 Capex to Reach $185 Billion
- Capex Expectations: Alphabet anticipates its capital expenditure for 2026 to reach between $175 billion and $185 billion, with the upper limit more than double the $91.45 billion spent in 2025, indicating strong confidence in future growth.
- Core AI Investments: The company stated that investments in AI computing capacity are central to its capex plans for 2026, highlighting its strategic focus on artificial intelligence as a driver for overall revenue and growth.
- Cautious Market Reaction: Following Alphabet's announcement, U.S. stocks are set for a cautious opening, with the SPDR S&P 500 ETF down 0.6%, reflecting investors' risk-off sentiment towards tech stocks.
- Increased Industry Volatility: Analysts noted that recent heavy selling in AI and software has heightened volatility across the tech sector, with market participants appearing to sell at the first sign of danger, which may impact Alphabet's market performance.
See More
Alphabet's Earnings Report Triggers ETF Volatility
- Earnings Impact: Following Alphabet's earnings report on Wednesday, the stock fell over 4%, significantly affecting its 658 million shares held across 421 ETFs, leading to increased volatility in related ETFs.
- Concentrated ETF Holdings: As one of the most widely held stocks in the ETF landscape, Alphabet's price fluctuations will directly impact the performance of heavily allocated ETFs, prompting investors to reassess their portfolios, particularly in the communication services sector.
- Top ETFs Listed: Among the top ten ETFs with the largest allocations to Alphabet, the T-Rex 2X Long Alphabet Daily Target ETF (GOOX) leads with a 73.96% allocation, indicating its high sensitivity to Alphabet's stock price movements.
- Market Reaction: With Alphabet's stock experiencing sharp fluctuations, investors may reconsider their investment strategies in the communication services sector, especially in the current market environment where ETF liquidity and risk management are crucial.
See More
Alphabet's SpaceX Stake Surges to Nearly $100 Billion
- Remarkable ROI: Alphabet's $900 million investment in SpaceX in 2015 has ballooned to nearly $100 billion, showcasing the immense potential of this stake, which is now considered one of the most successful trades in the company's history.
- Merger Proposal Impact: Elon Musk's proposal to merge SpaceX with xAI could lead to a combined valuation of $1.25 trillion, further enhancing Alphabet's investment value, potentially pushing its stake worth to around $90 billion.
- Unrealized Gains Realized: In early 2025, Alphabet reported an $8 billion unrealized gain due to SpaceX's soaring valuation, marking a significant financial return from its investment in the space and AI sectors.
- Underappreciated Market Potential: While investors typically focus on Alphabet's search and advertising businesses, its stake in SpaceX could serve as a powerful catalyst for stock price appreciation, especially with a potential IPO on the horizon.
See More
Alphabet Plans $175B-$185B Capital Spending for 2026 to Boost AI Momentum
- Capital Expenditure Plan: Alphabet announced a capital spending plan of $175B to $185B for 2026, aimed at enhancing its competitiveness in artificial intelligence across search, cloud, and YouTube, thereby driving business growth in these sectors.
- Potential Beneficiaries: Broadcom, a partner of Alphabet, is likely to benefit from this investment, with its shares rising 2% in premarket trading on Thursday, reflecting market optimism about its collaboration on Google's custom tensor processing units.
- Other Beneficiaries: Nvidia and AMD may also gain from Alphabet's spending plans, although both saw declines in premarket trading on Thursday, indicating market caution regarding their roles in cloud computing and AI demands.
- Supply Chain Dynamics: Celestica and Lumentum could benefit from Alphabet's investment, with Celestica's shares rising 1.9%, while Lumentum's shares fell 5%, highlighting market uncertainty regarding its optical interconnect products for data centers.
See More
