Alphabet (GOOGL) Stock: Google’s $900 Million SpaceX Bet Could Return $111 Billion

TLDR

• Google invested $900 million in SpaceX in 2015 for a 7% stake when the company was valued at $12 billion
• SpaceX is reportedly planning an IPO at a $1.5 trillion valuation, which would make Google’s stake worth roughly $111 billion
• Google already reported an $8 billion gain from SpaceX in Q1 2025, representing 25% of the company’s total net income for that quarter
• Elon Musk confirmed on social media that reports about SpaceX’s upcoming IPO are “accurate”
• Google’s investment has paid off both financially and strategically, with Starlink using Google Cloud services

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Google made a $900 million investment in SpaceX back in 2015. The tech giant received a 7% ownership stake in return.

Alphabet Inc., GOOGL

At the time, SpaceX was valued at just $12 billion. Many experts questioned whether the investment would pay off.

Fast forward to today, and that bet is looking pretty smart. SpaceX is now preparing to go public at a reported $1.5 trillion valuation.

If the IPO happens at that price, Google’s original stake would be worth roughly $111 billion. That represents a return of over 12,000% on the initial investment.

Elon Musk appeared to confirm the IPO plans on social media. He called reports about the public offering “accurate” in a post on X.

The investment has already delivered real financial results for Google. In the first quarter of 2025, the company reported an $8 billion gain from private investments.

Bloomberg identified SpaceX as the source of that gain. The $8 billion represented a full 25% of Google’s total net income for the quarter.

Early Doubters

When Google first invested in SpaceX, the focus was on Starlink. The satellite internet project faced serious skepticism from industry watchers.

Critics pointed to massive technical challenges and unclear financial prospects. Questions about ground antenna costs and radio spectrum rights dominated the conversation.

The Wall Street Journal highlighted these concerns at the time of the investment. Many wondered if SpaceX could even transmit internet signals to Earth effectively.

Those doubts have been put to rest. Starlink now serves customers ranging from the Ukrainian military to major airlines like United.

Strategic Benefits

The relationship between Google and SpaceX extends beyond just financial returns. Starlink uses Google Cloud to power its services.

This creates ongoing revenue for Google’s cloud division. It also strengthens the strategic partnership between the two companies.

Google currently holds one of the largest outside stakes in SpaceX. Other major investors include Founders Fund and Fidelity.

Despite Google’s massive $3.8 trillion market cap, the SpaceX investment has moved the needle. The company’s stock has climbed nearly 70% this year.

Wall Street analysts maintain a Strong Buy rating on Google stock. The consensus is based on 29 Buy ratings and seven Hold ratings from the past three months.

The average price target sits at $320.15 per share. Analysts believe shares are currently trading near fair value.

SpaceX’s planned IPO timing remains unclear beyond “next year.” Neither Google nor SpaceX responded to requests for comment about the public offering plans.

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