SpaceX IPO Approaches, Investors Eye Alphabet for Exposure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 09 2026
0mins
Source: Fool
- Investment Opportunity: With the SpaceX IPO approaching, investor interest in Alphabet is rising due to its close partnership with SpaceX and a 6% stake, making Alphabet a solid indirect investment in SpaceX.
- Collaborative Prospects: SpaceX and Alphabet are reportedly discussing collaboration on establishing data centers in space, with Alphabet paying approximately $920 million monthly for AI computing capacity, highlighting the potential for deep technological cooperation.
- Financial Stability: Unlike the unprofitable SpaceX, Alphabet is already highly profitable and generating substantial free cash flow, offering a safer investment option that mitigates risk for investors.
- IPO Risks: Although SpaceX's valuation is expected to reach $1.75 trillion, its high valuation and lack of profitability pose significant IPO risks, leading investors to prefer Alphabet to avoid potential market 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: 361.920
Low
305.00
Averages
374.25
High
400.00
Current: 361.920
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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- Advertising Revenue Potential: While Meta invests heavily in AI, its advertising business remains the primary cash flow source; however, the benefits of its AI investments are largely indirect, such as improved ad targeting, resulting in a longer and less certain path from spending to profit.
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