Back in 2015, tech giant Google (GOOGL) invested about $900 million in SpaceX (PC:SPXEX) for a 7% ownership stake. At the time, SpaceX was valued at just $12 billion. Now, the aerospace company is reportedly planning to go public at a massive $1.5 trillion valuation. If that happens, Google’s original stake would be worth roughly $111 billion, thereby making it one of the most profitable startup bets in history.
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Even though Google is already a huge company worth $3.8 trillion, this SpaceX investment has had a big financial impact. Indeed, earlier in 2025, Google reported an $8 billion gain from private investments, which Bloomberg linked to SpaceX. That single gain made up a quarter of Google’s total profits for the first quarter. Elon Musk has also hinted that a SpaceX IPO is coming soon by responding to a reporter’s post on social media and calling it “accurate.”
At first, Google’s investment focused on Starlink, SpaceX’s satellite internet project. Interestingly, critics back then doubted whether it could work due to the huge costs and technical challenges. But now Starlink is widely used, even by the Ukrainian military and major airlines. Google has also benefited in other ways, with Starlink using Google Cloud for its services. As a result, all signs suggest that Google’s bet is paying off both financially and strategically.
Is GOOGL Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 29 Buys and seven Holds assigned in the past three months. Furthermore, the average GOOGL price target of $320.15 per share implies that shares are trading near fair value.
