SpaceX IPO Could Become Largest in History
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy GOOGL?
Source: NASDAQ.COM
- Valuation Target: SpaceX has filed for an IPO with a target valuation exceeding $2 trillion, which would make it the largest IPO in history and potentially the sixth-largest public company globally, just behind Amazon.
- Alphabet's Investment Returns: Alphabet invested $900 million in SpaceX in 2015 for a 7.5% stake, and if SpaceX goes public at a $2 trillion valuation, that investment could be worth $150 billion, yielding a remarkable 166-fold return, marking it as one of Alphabet's most successful investments.
- Shareholding Decision Challenge: Alphabet faces a tough decision on whether to retain its stake in SpaceX; holding onto the shares would indicate confidence in SpaceX's future, while selling might be a strategic move to fund other initiatives like AI infrastructure.
- AI Competition and Investment Opportunity: In the context of competing for AI supremacy, if Alphabet can attract more clients by expanding its hyperscale data centers, selling SpaceX stock could become strategically significant, especially with Alphabet's stock down about 15%, making this an opportune time for investment.
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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: 305.460
Low
305.00
Averages
374.25
High
400.00
Current: 305.460
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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- AI Full-Stack Advantage: As the only company with comprehensive AI capabilities, Alphabet's strong presence across chips, cloud computing, and research positions it as a leader in the AI market, enhancing investor confidence in its future profitability.
- Self-Funding Cash Flow: Alphabet's ability to aggressively invest in chips and cloud capabilities while generating substantial free cash flow provides it with a significant edge in the AI competition, further solidifying its market position.
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- Strait of Hormuz Traffic: Although the ceasefire agreement mandates the reopening of the Strait of Hormuz to normal shipping traffic, actual vessel traffic remains low, raising concerns about energy supply and further contributing to oil price volatility.
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- IPO Valuation Target: SpaceX has filed for an IPO, reportedly targeting a valuation exceeding $2 trillion, which would make it the largest IPO in history and potentially the sixth-largest public company globally, right behind Amazon.
- Investment Return Potential: If SpaceX goes public at a $2 trillion valuation, Alphabet's 7.5% stake acquired for $900 million in 2015 would be worth $150 billion, yielding approximately a 166-fold return, highlighting the immense potential of this investment.
- Investment Decision Challenge: Alphabet faces a tough decision on whether to hold its SpaceX shares, which would indicate confidence in SpaceX's future, or sell them to fund other projects like AI infrastructure, especially amid competition for AI market dominance.
- Timing the Investment: With Alphabet's stock down about 15% from its all-time high, now may be an opportune time for investors to buy into Alphabet to gain indirect exposure to SpaceX's IPO, benefiting from both potential high returns from SpaceX and Alphabet's strengths in AI.
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- Improved Profitability: Spotify's gross margin expanded to 33.1% in Q4, an 83-basis-point increase from the previous year, indicating stronger profitability across both its premium subscribers and ad-supported free tier.
- Market Competition Pressure: Despite strong fundamentals, Spotify's stock faces pressure with a current P/E ratio of about 40, reflecting high market expectations for future growth, while competition from giants like Apple and Amazon poses significant market risks.
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- Valuation Target: SpaceX has filed for an IPO with a target valuation exceeding $2 trillion, which would make it the largest IPO in history and potentially the sixth-largest public company globally, just behind Amazon.
- Alphabet's Investment Returns: Alphabet invested $900 million in SpaceX in 2015 for a 7.5% stake, and if SpaceX goes public at a $2 trillion valuation, that investment could be worth $150 billion, yielding a remarkable 166-fold return, marking it as one of Alphabet's most successful investments.
- Shareholding Decision Challenge: Alphabet faces a tough decision on whether to retain its stake in SpaceX; holding onto the shares would indicate confidence in SpaceX's future, while selling might be a strategic move to fund other initiatives like AI infrastructure.
- AI Competition and Investment Opportunity: In the context of competing for AI supremacy, if Alphabet can attract more clients by expanding its hyperscale data centers, selling SpaceX stock could become strategically significant, especially with Alphabet's stock down about 15%, making this an opportune time for investment.
See More











