Alphabet Reports $94 Billion Stake in SpaceX Following IPO

Alphabet Inc. revealed in a second-quarter regulatory filing that it holds a roughly 5% ownership stake in Space Exploration Technologies Corp., valued at approximately $94.1 billion. The investment, initiated in January 2015 alongside Fidelity Investments, followed the June 2026 initial public offering of Space Exploration Technologies Corp., which valued the aerospace firm at over $2 trillion.

This equity position drove a $99 billion gain in Alphabet's portfolio, boosting its reported net income by 298% to $112.11 billion for the April-June period. Overall second-quarter revenue grew 24% to $119.8 billion, supported by search advertising and artificial intelligence investments.

Despite the valuation, the gains remain unrealized due to significant sale restrictions. Approximately $80 billion of the shares are subject to short-term IPO lockup restrictions, and another $14.1 billion are restricted through the third quarter of 2027. These constraints prevent Alphabet from using the funds to offset its 2026 capital spending guidance, which has increased to between $195 billion and $205 billion. Some restrictions are expected to ease following the first SpaceX earnings report on August 4.