Alphabet (GOOGL) Could Score a $100B+ Payday from SpaceX IPO

Tech giant Alphabet (GOOGL) could be sitting on a massive payoff from its early investment in Elon Musk‘s space firm SpaceX. More specifically, new filings reveal that Google owned about 6.11% of SpaceX at the end of 2025, which would be worth roughly $122 billion if the company reaches a $2 trillion valuation in its expected IPO. However, after SpaceX merged with Elon Musk’s xAI earlier this year, that stake is estimated to have dropped closer to 5%, or about $100 billion at the same valuation.

SpaceX is reportedly targeting a June listing that could raise as much as $75 billion, potentially making it the largest IPO ever. If the company reaches a $2 trillion valuation, even a very small stake could turn investors into billionaires overnight. In addition, Elon Musk, who still owns around 40% of the company, could become the world’s first trillionaire. Early investors and employees are also expected to see massive gains, with some analysts noting that those who invested as recently as 2021 could still achieve returns of around 20 times their original investment.

Looking back, Google first invested in SpaceX in 2015 as part of a $1 billion funding round that valued the company at just $10 billion. Since then, ownership stakes have gradually declined due to dilution and additional funding rounds, although the value of those stakes has increased significantly. Meanwhile, Alphabet has already benefited from this investment through unrealized gains reported in its earnings, including an $8 billion boost in early 2025 tied to a private holding believed to be SpaceX.

Are GOOGL Shares a Good Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 25 Buys and five Holds assigned in the past three months. Furthermore, the average GOOGL price target of $385.46 per share implies 14.8% upside potential.