Why a SpaceX IPO Could Be a Major Catalyst for GOOGL Stock

Core Insights - There is a growing expectation that SpaceX could pursue an IPO as early as 2026, with a potential valuation of $1.5 trillion, making it the largest public offering in history [3] - Alphabet, as one of SpaceX's earliest and significant outside investors, stands to unlock extraordinary unrealized gains if SpaceX goes public at the rumored valuation [4] Investment Background - Alphabet invested approximately $900 million for a 7.4% stake in SpaceX in 2015 when SpaceX was valued at nearly $12 billion [4] - This investment has become one of the most successful venture capital bets, with Alphabet disclosing around $8 billion in unrealized gains tied to its SpaceX stake by Q1 2025, reflecting private-market valuations of about $350 billion [5] Potential Impact of IPO - If SpaceX IPOs near the rumored $1.5 trillion valuation, Alphabet's initial $900 million investment could exceed $110 billion in value [6] - The success of Starlink has transformed SpaceX into a global communications infrastructure provider, contributing to rapid subscriber growth and rising revenue, which has led to a significant re-rating in private market valuations [6] - An IPO would crystallize a major hidden asset on Alphabet's balance sheet, reinforcing its long-term innovation edge alongside other investments like Waymo and AI [6]