Alphabet’s SpaceX Bet Grows 100 Times to $94 Billion
Synopsis
Alphabet’s 2015 SpaceX investment has grown 100 times to about $94 billion, with the Google parent holding 551.2 million SpaceX shares at the end of June.
Key Highlights
- Alphabet’s initial $900 million investment in SpaceX has grown to around $94 billion.
- Alphabet held 551.2 million SpaceX shares as of June 30.
- Alphabet is now the biggest reported institutional shareholder in SpaceX.
- SpaceX went public on June 12 at $135 per share.
Alphabet’s initial investment in SpaceX has multiplied more than 100 times. The Google parent held a stake worth roughly $94 billion at the end of June, compared with the $900 million it originally invested in Elon Musk’s rocket company in 2015.
According to a Reuters analysis of public quarterly filings, Alphabet has become the largest single reported institutional investor in SpaceX following the company’s $86 billion initial public offering in June.
Alphabet’s SpaceX Holding
At the end of the second quarter, Alphabet owned 551.2 million SpaceX shares valued at approximately $94.2 billion, based on SpaceX’s June 30 closing price of $170.86.
Using Thursday’s share price, Alphabet’s reported stake would be worth about $77.9 billion. Even at that level, the investment would be worth roughly 86.5 times Alphabet’s original outlay.
Alphabet disclosed its $900 million investment in SpaceX in 2015, giving investors a clear benchmark for measuring how dramatically the value of the stake has increased.
Other Major SpaceX Investors
Fidelity Investments was the second-largest reported institutional holder, with 302.6 million SpaceX shares. It was followed by Gigafund Management with 171.8 million shares, Baillie Gifford with 51.4 million and BlackRock with 51 million.
Saudi Arabia’s Public Investment Fund owned 154.1 million shares, valued at $26.3 billion at the end of June. Hancock Prospecting held 8 million shares worth approximately $1.4 billion.
Alphabet, Fidelity, Gigafund Management, Baillie Gifford and BlackRock together accounted for nearly three-quarters of the reported SpaceX shares. SpaceX separately disclosed that Musk held a 48.4% ownership stake in the company.
SpaceX Shares After IPO
SpaceX shares debuted on June 12 at $135 each. By Thursday’s close, the stock had climbed to $141.29, marking a 4.7% gain from its IPO price. However, it remained 17.3% below its June 30 closing level.
Meanwhile, Vanda Research reported that retail investors turned into net sellers of SpaceX shares on Friday for the first time since the company went public. The firm said retail investors recorded net sales of $4.5 million that day. SpaceX shares dropped 3% on Thursday but have still gained 30% since August 5.
Source: Reuters
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