This "Magnificent Seven" Stock Will Be a Big Winner from the SpaceX IPO (Hint: It's Not Tesla)
Alphabet, Google's parent company, is set to benefit significantly from SpaceX's upcoming IPO due to its early investment in the space technology company. The investment, made in 2015, could yield a nearly 136x return, making it one of Alphabet's most successful deals.
SpaceX plans to go public in the next few months at a valuation near $2 trillion. Alphabet, Google's parent company, invested $900 million in SpaceX in 2015, giving it a 7.5% stake. Although its stake was diluted over time, Alphabet still owned 6.11% of SpaceX at the end of 2025. Assuming the IPO valuation is $2 trillion, Alphabet's stake will be worth roughly $122.2 billion, yielding a nearly 136x return. This investment is expected to be one of Alphabet's most successful deals, rivaling its acquisition of YouTube in 2006. Alphabet will also benefit from SpaceX's Starlink unit, which is a Google Cloud customer, potentially expanding internet usage and driving growth for Google's services. The company will score a huge financial victory from the IPO and a strategic win from Starlink's growth.
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