Alphabet's initial $900 million investment in Elon Musk's rocket company SpaceX in 2015 has delivered exceptional returns, now worth approximately $94 billion at the end of June. According to a Reuters report, this represents a 100-fold increase in value, making Alphabet the largest institutional shareholder in the company following SpaceX's $86 billion IPO in June. The investment has grown from a startup bet into a publicly listed giant, demonstrating the dramatic value creation in the space industry.
As reported by Reuters, Alphabet held 551.2 million SpaceX shares at the end of the quarter, valued at about $94.2 billion based on SpaceX's June 30 price of $170.86. At Thursday's price, the stake was worth roughly $77.9 billion, still representing 86.5 times Alphabet's original investment. Other major institutional holders include Fidelity Investments with 302.6 million shares, Gigafund Management with 171.8 million, Saudi Arabia's PIF with 154.1 million, Baillie Gifford with 51.4 million, and BlackRock with 51 million shares. Hancock Prospecting held 8 million shares.
According to Reuters, SpaceX was listed on June 12 at $135 per share and closed at $141.29 on Thursday, up 4.7% from its IPO price but down 17.3% from its June 30 close. The stock remains 30% up since August 5, though it fell 3% on Thursday. Retail investors turned net sellers for the first time since the IPO on Friday, selling a net $4.5 million worth of shares, as reported by Vanda Research. SpaceX shares continue to be among the most actively traded stocks among customers at Interactive Brokers, receiving a fresh jolt of buying when market fears about lockup expiry proved unfounded.
Despite early post-IPO declines, SpaceX shares have rallied near 40% from their debut levels, with Wall Street analysts overwhelmingly recommending buying. According to recent reports, price targets average $226 with some forecasts reaching as high as $800 within the next year, though some caution a possible drop to $75. The company's positive earnings and strategic investments, including Tesla's stake in a Texas plant, are expected to drive future growth. SpaceX is projected to see its revenue jump from $47 billion to over $100 billion within a year, while Anthropic, an AI company, is targeting an October IPO with a valuation of $2 trillion or more, which would surpass SpaceX's recent $1.77 trillion debut.
