SpaceX IPO Could Become Largest in History
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 09 2026
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: 349.780
Low
305.00
Averages
374.25
High
400.00
Current: 349.780
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.
Wall Street Focuses on Tech Giants' Profit Outlook
- Earnings Expectations: Wall Street is eagerly anticipating first-quarter earnings reports from Amazon, Alphabet, Meta, and Microsoft, with analysts seeking tangible evidence that AI investments are translating into actual profits to justify high valuations.
- Cloud Growth Focus: Investors are particularly interested in whether Microsoft's Azure can maintain an annual growth rate of around 40%, as well as its impact on capital expenditures, which will be crucial for assessing future profitability and market performance.
- Ad and AI Performance: Alphabet's advertising and YouTube ad performance will be closely monitored, especially the usage of Gemini AI; strong results could propel the stock upward, given the company's robust AI capabilities.
- Meta's AI Investment Returns: Meta's AI investment trajectory and expense management are in the spotlight, with analysts hoping for more insights into AI product developments during the first-quarter call to boost market confidence.
See More
Buffett's Major Investment in Alphabet
- New Investment Direction: Buffett purchased 17.8 million shares of Alphabet in Q3 2025 at an average closing price of $209.06 per share, with the current stock price exceeding $350, reflecting his strong confidence and long-term investment strategy.
- AI Potential: As one of the few companies capable of owning and monetizing AI globally, Alphabet's full-stack AI infrastructure and vast ecosystem allow it to rapidly distribute new AI features to billions of users, giving it a competitive edge.
- Strong Financial Performance: Analysts expect Alphabet's revenue and EPS to grow at CAGRs of 16% and 13%, respectively, from 2025 to 2028, indicating robust growth potential in the cloud and AI sectors.
- Reasonable Valuation: Despite Alphabet's stock price rising to $350, its P/E ratio stands at 26 times, suggesting it remains reasonably valued and comparable to many of Buffett's other top holdings.
See More
Data Centers Drive AI Infrastructure Revolution
- Surge in Data Center Demand: As technology companies increasingly crave high-performance computing capacity, CoreSite's facilities near New York exemplify the emerging data center trend, with major tech firms expected to invest at least $608 billion in data center buildouts in 2023, highlighting the fierce competition in AI.
- Soaring Power Needs: The power demand for data centers has skyrocketed from tens of megawatts three years ago to hundreds and even thousands of megawatts, reflecting the immense energy requirements driven by AI technologies, prompting exploration of renewable energy and new power solutions.
- Strong Performance from GE Vernova: GE Vernova reported a 16% year-over-year revenue increase to $9.3 billion in Q1, with robust equipment orders and an anticipated backlog of $200 billion by 2027, indicating that AI's demand for energy products is driving sustained growth for the company.
- Innovation in Liquid Cooling: CoreSite's NY3 data center is adopting liquid cooling systems to manage high-density heat issues, while Eaton's strategic acquisition of liquid cooling leader Boyd Thermal is expected to enhance its market position in data center cooling solutions.
See More
Earnings Preview for the Magnificent Seven Stocks
- Market Volatility Expectation: Options traders anticipate over $800 billion in market cap movement following the earnings reports of the four tech giants, indicating heightened market focus and uncertainty surrounding the upcoming results.
- Meta Performance Analysis: Despite Meta's implied volatility at 7.3%, below the annual average of 9.3%, it has exceeded implied moves in its last three reports, suggesting ongoing market confidence in its future performance.
- Alphabet Volatility Expectation: Alphabet's options imply a near 6% move, significantly higher than the four-quarter average of under 1.5%, yet historically, its actual moves tend to underperform expectations, potentially disappointing investors.
- Amazon Bullish Sentiment: Amazon saw active bullish options trading ahead of earnings, with one trader spending $616,000 on 581 contracts of 260-strike calls, reflecting optimistic market sentiment regarding its future performance.
See More
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- ETF Rebound Trend: The MAGS ETF has rebounded sharply from March lows, although it has yet to break new highs, indicating increased market focus on large-cap growth stocks, potentially setting the stage for upcoming earnings releases.
- Relative Strength Performance: Despite not surpassing its historical highs, MAGS has shown strong relative performance against the SPX in recent weeks, suggesting that if this trend continues, it could drive further upside for the ETF.
- Divergent Component Performance: Within the MAGS ETF, GOOGL and NVDA have surged approximately 120% and 94%, respectively, while the other five components have lagged; if these laggards regain investor interest, it could enhance the overall ETF performance.
- Importance of Earnings Reactions: The earnings reactions of the five major components over the next two days are crucial, as strong results could bolster market confidence in large-cap growth stocks, potentially leading to a broader market recovery.
See More
Value Investor Reinvests in Microsoft and Nvidia
- Investment Strategy Shift: Chris Grisanti, chief market strategist at MAI Capital Management, purchased Microsoft and Nvidia in Q1 2026 despite Microsoft’s over 12% decline year-to-date, viewing this as a unique opportunity for value investors to acquire these high-quality stocks at below-market P/E ratios.
- Microsoft's Potential: With a current P/E ratio of 19.6, nearly two standard deviations below its six-year average, Grisanti anticipates a 30% upside if it returns to normal valuation levels, with potential total returns nearing 50% in the coming years, highlighting its competitive edge in the AI race.
- Nvidia's Buying Opportunity: Nvidia's stock dropped over 6% in Q1, creating a buying opportunity for Grisanti, who notes its current P/E of 18 times is attractive; if it reverts to its historical norm of 30 times, shares could see a 60% upside, indicating strong growth potential.
- Market Response and Outlook: Despite market volatility affecting both Microsoft and Nvidia, Grisanti plans to buy on dips, reflecting his long-term optimism for these stocks, particularly against the backdrop of ongoing investments in AI and growing market demand.
See More
Wall Street Focuses on Tech Giants' Profit Outlook
- Earnings Expectations: Wall Street is eagerly anticipating first-quarter earnings reports from Amazon, Alphabet, Meta, and Microsoft, with analysts seeking tangible evidence that AI investments are translating into actual profits to justify high valuations.
- Cloud Growth Focus: Investors are particularly interested in whether Microsoft's Azure can maintain an annual growth rate of around 40%, as well as its impact on capital expenditures, which will be crucial for assessing future profitability and market performance.
- Ad and AI Performance: Alphabet's advertising and YouTube ad performance will be closely monitored, especially the usage of Gemini AI; strong results could propel the stock upward, given the company's robust AI capabilities.
- Meta's AI Investment Returns: Meta's AI investment trajectory and expense management are in the spotlight, with analysts hoping for more insights into AI product developments during the first-quarter call to boost market confidence.
See More
Buffett's Major Investment in Alphabet
- New Investment Direction: Buffett purchased 17.8 million shares of Alphabet in Q3 2025 at an average closing price of $209.06 per share, with the current stock price exceeding $350, reflecting his strong confidence and long-term investment strategy.
- AI Potential: As one of the few companies capable of owning and monetizing AI globally, Alphabet's full-stack AI infrastructure and vast ecosystem allow it to rapidly distribute new AI features to billions of users, giving it a competitive edge.
- Strong Financial Performance: Analysts expect Alphabet's revenue and EPS to grow at CAGRs of 16% and 13%, respectively, from 2025 to 2028, indicating robust growth potential in the cloud and AI sectors.
- Reasonable Valuation: Despite Alphabet's stock price rising to $350, its P/E ratio stands at 26 times, suggesting it remains reasonably valued and comparable to many of Buffett's other top holdings.
See More
Data Centers Drive AI Infrastructure Revolution
- Surge in Data Center Demand: As technology companies increasingly crave high-performance computing capacity, CoreSite's facilities near New York exemplify the emerging data center trend, with major tech firms expected to invest at least $608 billion in data center buildouts in 2023, highlighting the fierce competition in AI.
- Soaring Power Needs: The power demand for data centers has skyrocketed from tens of megawatts three years ago to hundreds and even thousands of megawatts, reflecting the immense energy requirements driven by AI technologies, prompting exploration of renewable energy and new power solutions.
- Strong Performance from GE Vernova: GE Vernova reported a 16% year-over-year revenue increase to $9.3 billion in Q1, with robust equipment orders and an anticipated backlog of $200 billion by 2027, indicating that AI's demand for energy products is driving sustained growth for the company.
- Innovation in Liquid Cooling: CoreSite's NY3 data center is adopting liquid cooling systems to manage high-density heat issues, while Eaton's strategic acquisition of liquid cooling leader Boyd Thermal is expected to enhance its market position in data center cooling solutions.
See More
Earnings Preview for the Magnificent Seven Stocks
- Market Volatility Expectation: Options traders anticipate over $800 billion in market cap movement following the earnings reports of the four tech giants, indicating heightened market focus and uncertainty surrounding the upcoming results.
- Meta Performance Analysis: Despite Meta's implied volatility at 7.3%, below the annual average of 9.3%, it has exceeded implied moves in its last three reports, suggesting ongoing market confidence in its future performance.
- Alphabet Volatility Expectation: Alphabet's options imply a near 6% move, significantly higher than the four-quarter average of under 1.5%, yet historically, its actual moves tend to underperform expectations, potentially disappointing investors.
- Amazon Bullish Sentiment: Amazon saw active bullish options trading ahead of earnings, with one trader spending $616,000 on 581 contracts of 260-strike calls, reflecting optimistic market sentiment regarding its future performance.
See More
Analysis and Outlook for MAGS ETF Performance
- ETF Rebound Trend: The MAGS ETF has rebounded sharply from March lows, although it has yet to break new highs, indicating increased market focus on large-cap growth stocks, potentially setting the stage for upcoming earnings releases.
- Relative Strength Performance: Despite not surpassing its historical highs, MAGS has shown strong relative performance against the SPX in recent weeks, suggesting that if this trend continues, it could drive further upside for the ETF.
- Divergent Component Performance: Within the MAGS ETF, GOOGL and NVDA have surged approximately 120% and 94%, respectively, while the other five components have lagged; if these laggards regain investor interest, it could enhance the overall ETF performance.
- Importance of Earnings Reactions: The earnings reactions of the five major components over the next two days are crucial, as strong results could bolster market confidence in large-cap growth stocks, potentially leading to a broader market recovery.
See More
Value Investor Reinvests in Microsoft and Nvidia
- Investment Strategy Shift: Chris Grisanti, chief market strategist at MAI Capital Management, purchased Microsoft and Nvidia in Q1 2026 despite Microsoft’s over 12% decline year-to-date, viewing this as a unique opportunity for value investors to acquire these high-quality stocks at below-market P/E ratios.
- Microsoft's Potential: With a current P/E ratio of 19.6, nearly two standard deviations below its six-year average, Grisanti anticipates a 30% upside if it returns to normal valuation levels, with potential total returns nearing 50% in the coming years, highlighting its competitive edge in the AI race.
- Nvidia's Buying Opportunity: Nvidia's stock dropped over 6% in Q1, creating a buying opportunity for Grisanti, who notes its current P/E of 18 times is attractive; if it reverts to its historical norm of 30 times, shares could see a 60% upside, indicating strong growth potential.
- Market Response and Outlook: Despite market volatility affecting both Microsoft and Nvidia, Grisanti plans to buy on dips, reflecting his long-term optimism for these stocks, particularly against the backdrop of ongoing investments in AI and growing market demand.
See More
