Alphabet (GOOGL) Stock: SpaceX Valuation Surge Means More Profits for Google

TLDR

• SpaceX’s latest tender offer prices shares at $421, valuing the company at approximately $800 billion
• Google parent Alphabet holds a stake from its 2015 investment when it joined a $1 billion funding round
• Alphabet previously booked an $8 billion unrealized gain from SpaceX earlier in 2025
• The higher SpaceX valuation will likely appear as another accounting gain in Alphabet’s Q4 earnings
• Wall Street maintains a Strong Buy rating on GOOGL with upside potential ahead

Alphabet stands to benefit from a major jump in SpaceX’s private market valuation. The rocket company’s recent insider share sale valued the business at roughly $800 billion. Shares sold at $421 each in the tender offer.

Alphabet Inc., GOOGL

This represents a huge leap from SpaceX’s previous $350 billion valuation from late 2024. For Alphabet, the increase means a higher carrying value for its investment stake. That translates to another potential earnings boost when the company reports results.

Google invested in SpaceX nearly a decade ago. In 2015, it partnered with Fidelity Investments on a $1 billion funding round. The two firms combined for about 10% of the space company at that time.

Alphabet keeps quiet about its current SpaceX ownership percentage. The company doesn’t disclose individual private investments by name in regulatory filings. But valuation changes at SpaceX have historically shown up in Alphabet’s quarterly results.

Previous SpaceX Gains Already Boosted Earnings

This isn’t the first time SpaceX has helped Alphabet’s bottom line. Back in April, the company reported an $8 billion unrealized gain from an investment in an unnamed private firm. Market observers widely understood this to be SpaceX.

That gain came after SpaceX’s late 2024 tender offer at the $350 billion valuation. The accounting boost helped Alphabet exceed Wall Street’s profit expectations for its March quarter. These types of gains show up as unrealized gains on non-marketable equity securities in financial statements.

The gains are paper profits rather than actual cash. But they still count toward reported net income for the quarter. When a private company’s value increases, Alphabet marks up its investment to reflect the new price.

What Investors Should Expect

With SpaceX now valued at $800 billion, the math suggests another substantial gain for Alphabet. Investors will get clarity when the company reports Q4 and full-year 2024 results in early February. Any increase in SpaceX’s carrying value should appear in those financials.

Alphabet’s core business remains focused on search advertising, YouTube, cloud services, and AI development. The SpaceX investment represents a side bet that’s delivered outsized returns. But it doesn’t change the company’s fundamental business model or growth drivers.

Analysts remain bullish on GOOGL shares. The stock holds a Strong Buy consensus rating with 29 Buy recommendations and seven Hold ratings. The average analyst price target of $323.64 implies modest upside from current trading levels.

Google declined to comment on its SpaceX holdings. Company policy prohibits discussing individual private investments. However, the updated valuation will become clear through required financial disclosures when Alphabet files its next quarterly report with regulators.

SpaceX continues expanding its Starlink satellite internet service and advancing rocket technology. The company’s valuation growth reflects strong business performance and investor demand for exposure to the space industry.

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