Alphabet (GOOGL) Stock: SpaceX Investment About to Print Another Billion-Dollar Gain

TLDR

• SpaceX’s recent tender offer values the company at $800 billion, with shares priced at $421 each
• Alphabet invested in SpaceX in 2015 alongside Fidelity for roughly 10% stake in a $1 billion funding round
• Earlier this year, Alphabet reported an $8 billion unrealized gain from SpaceX when it was valued at $350 billion
• The new valuation could deliver another accounting boost in Alphabet’s February earnings report
• Analysts rate GOOGL stock a Strong Buy with an average price target of $323.64

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Alphabet could be looking at another windfall from its SpaceX investment. The space company just completed a tender offer that values it at roughly $800 billion. That’s a massive jump from the $350 billion valuation it carried late last year.

Alphabet Inc., GOOGL

The insider share sale priced SpaceX stock at $421 per share. This marks a sharp increase from previous secondary transactions. For Alphabet, that means the carrying value of its SpaceX stake is about to get a lot bigger.

Google first bought into SpaceX back in 2015. The company joined Fidelity Investments in a $1 billion funding round. Together, they grabbed about 10% of the rocket company at the time.

Alphabet doesn’t reveal how much of SpaceX it owns today. The company also doesn’t name specific private holdings in its financial reports. But the math is pretty straightforward when SpaceX’s value changes this much.

This isn’t new territory for Alphabet. The company already cashed in on SpaceX’s rising value once this year. In April, Alphabet disclosed an $8 billion unrealized gain tied to an investment in a private company.

While Alphabet didn’t name names, everyone understood it was SpaceX. That gain came after a late 2024 tender offer valued the space company at $350 billion. The accounting boost helped Alphabet beat Wall Street’s earnings expectations for the March quarter.

How Private Investments Show Up in Earnings

These gains appear in Alphabet’s books as unrealized gains on non-marketable equity securities. They’re paper profits, not cash. But they still count toward reported earnings in a given quarter.

The mechanics are simple. When SpaceX’s private market value goes up, Alphabet adjusts the carrying value of its investment. That adjustment flows through the income statement as a gain.

With SpaceX now valued at $800 billion instead of $350 billion, the potential gain is substantial. Investors will be watching Alphabet’s next earnings report in early February for signs of another boost.

What This Means for Alphabet Stock

Alphabet’s business is still centered on advertising, cloud computing, and artificial intelligence. Those segments drive the bulk of revenue and profit. The SpaceX investment is a side bet that’s paying off nicely.

Wall Street analysts like what they see. The stock carries a Strong Buy rating based on 29 Buy ratings and seven Hold ratings assigned in the past three months. The average price target sits at $323.64, suggesting about 4.6% upside from current levels.

The SpaceX gains don’t change Alphabet’s long-term story. But they can juice quarterly earnings and give the stock a sentiment boost. With SpaceX continuing to grow its Starlink satellite business and advance its rocket technology, the valuation could keep climbing.

A Google spokesperson declined to comment on the SpaceX investment. The company maintains a policy of not discussing individual private holdings. But the numbers will speak for themselves when Alphabet reports Q4 results and provides an updated balance sheet showing the new carrying value of its SpaceX stake.

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