Google Holds $94.1 Billion in SpaceX Shares, Majority Still Under Sale Restrictions

Alphabet (GOOGL-US), the parent company of Google, has disclosed that its stake in SpaceX is now valued at $94.1 billion following the completion of the much-anticipated initial public offering (IPO) by the space and artificial intelligence (AI) company. This positions Google as one of the primary beneficiaries of SpaceX's public listing.

Google was an early investor in SpaceX, and as the company's valuation has continued to rise, this investment has significantly boosted Alphabet's profitability over recent quarters. According to quarterly filings submitted by Alphabet, approximately $80 billion worth of its SpaceX shares are subject to short-term sale restrictions, while an additional $14.1 billion is classified as long-term restricted stock, expected to remain locked until the third quarter of next year. This means Google cannot freely sell the majority of its holdings in the near term.

Following an IPO, early investors and insider shareholders are typically subject to a lock-up period during which they cannot sell their shares. This restriction is designed to prevent a flood of shares from entering the market too quickly, which could exert downward pressure on the stock price of the newly public company.

In addition to SpaceX, Alphabet's investment portfolio includes the rapidly growing AI startup Anthropic. Alphabet recently stated that gains from rising valuations of SpaceX and other portfolio companies contributed to nearly $100 billion in investment income during the second quarter, further boosting the company's net profit.

SpaceX's public listing not only delivers substantial paper gains for Google but also highlights the returns Alphabet has achieved through its strategic investments in the space and AI sectors. However, until these share restrictions are lifted, these gains remain unrealized, and their actual value may fluctuate based on SpaceX's post-IPO stock performance.