SpaceX Plans to Launch Largest IPO in History
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy GOOG?
Source: Fool
- IPO Financing Scale: SpaceX is set to conduct an IPO this summer aiming to raise $75 billion at a valuation of $1.75 trillion, which will significantly boost its capital expenditures and benefit multiple related companies.
- Alphabet's Investment Opportunity: Alphabet invested $900 million in SpaceX in 2015, and despite dilution from mergers, its stake could be worth approximately $87.5 billion post-IPO, highlighting its strong investment potential in the aerospace sector.
- Intel's Strategic Partnership: Intel is a key partner in SpaceX and Tesla's Terafab project, which aims to enhance chip production capacity, and the IPO proceeds could provide crucial funding, solidifying Intel's position in the semiconductor industry.
- Linde's Market Outlook: As a leading industrial gas supplier for rocket launches, Linde is expected to benefit from SpaceX's increased launch frequency, driving revenue growth, although its current stock price appears high, future demand could enhance profitability.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to fall
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 397.170
Low
255.00
Averages
336.08
High
400.00
Current: 397.170
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.
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- 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.
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- Core Business Performance: Microsoft's two core franchises, M365 and Azure, generate approximately 70% of its profits, with M365 regarded as the dominant workplace productivity platform, used daily by over 450 million people, indicating its deep integration within enterprises.
- Market Opportunities: Ackman pointed out that the current market volatility and the rise of passive index investing have created rare dislocations in high-quality stocks, similar to his previous investments in Google, Amazon, and Meta, asserting that MSFT offers compelling long-term value at today's valuation.
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See More
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- Significant Sales Growth: The integration of generative AI and large language models into Google Cloud has led to a remarkable 63% increase in high-margin sales in Q1 2023, indicating that the application of AI technology is significantly enhancing company performance.
- Decline in Buybacks: Despite Alphabet and Meta repurchasing $15.1 billion and $12.8 billion of stock respectively in Q1 2025, both companies completely halted buybacks in Q1 2026, which could negatively impact the stock market, especially given that buybacks have been a strong market support.
- EPS Enhancement Potential: Over the past decade, Alphabet and Meta have repurchased nearly 13% and 12.7% of their outstanding shares, significantly boosting earnings per share (EPS); however, with increased AI capital expenditures, their future buyback capabilities may be constrained, affecting the attractiveness of their valuations to investors.
See More
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