Google's parent company, Alphabet, sees 100-fold profit from SpaceX investment

Alphabet's $900 million investment in SpaceX over ten years ago is now valued at over $90 billion.

Alphabet announced on 14/8 that its stake in SpaceX was worth $94 billion as of the end of 6. In 2015, Alphabet invested $900 million into Elon Musk's aerospace company. This means the investment's value has increased by 100 times in just over ten years.

According to Reuters' analysis, Alphabet is currently the largest institutional investor in SpaceX. Recently, other major investors also disclosed their shareholdings. Fidelity Investments holds 302,6 million shares, making it the second-largest investor in SpaceX. Following them are Gigafund Management with 171,8 million shares, Baillie Gifford with 51,4 million, and BlackRock with 51 million.

Collectively, these five companies account for approximately 75% of the publicly disclosed SpaceX shares, indicating a high concentration of ownership among a few institutional investors.

Saudi Arabia's Public Investment Fund (PIF), Hancock Prospecting – a company owned by Australian mining billionaire Gina Rinehart – and Nvidia also acquired shares in the aerospace firm. Nvidia's investment in SpaceX totals $21 billion, making it their second-largest investment after their stake in Intel.

"Despite this, it is difficult to determine which of these institutions held shares before the initial public offering (IPO)," said Steve Sosnick, a market strategist at Interactive Brokers. Alphabet is a rare case, having publicly disclosed its investment in SpaceX in 2015, which provides a basis for comparison with its current value.

In a separate report submitted to regulators, SpaceX also stated that billionaire Elon Musk owned 48,4% of the company's shares as of the end of 6. This stake is currently equivalent to approximately $900 billion.

SpaceX conducted its IPO in early 6, pricing shares at $135 each. After listing on 12/6, the stock consistently rose, at one point exceeding $200. However, the stock has since fallen 13%, though it remains above its IPO price.

Sosnick noted that SpaceX stock remains one of the most actively traded among his firm's clients. Last week, the stock "saw a new wave of buying, as market concerns following the first transfer restrictions did not materialize." Despite this, data from Vanda Research shows that individual investors holding SpaceX shares made net sales on the 14/8 trading session, the first time since the IPO.