Google Is Up $94 Billion on SpaceX But Not for the Reason You Think
Google simply revealed it holds about $94 billion of SpaceX inventory. The win got here from one wager it made again in 2015.
That feels like an enormous new funding, however it isn’t. Google made this wager greater than ten years in the past, lengthy earlier than SpaceX received large.
How Google’s SpaceX Bet Started in 2015
In January 2015, Google and Fidelity put $1 billion into SpaceX. Together they received just below 10% of the firm. That valued SpaceX at greater than $10 billion. Google led the spherical.
Then SpaceX grew for a decade. It went public in June at about $135 a share. That valued it close to $1.77 trillion, the largest IPO ever. Google’s early wager had grown right into a stake value about 100 occasions extra.
New funding rounds slowly shrank Google’s slice. Today it owns shut to five% of SpaceX.
Why the Windfall Barely Moved the Stock
The acquire confirmed up in Google’s June quarter. Its investments rose about $99 billion on paper. That pushed revenue as much as $112 billion. Stakes in AI firm Anthropic helped too.
But virtually none of it was actual money. Of the $9.11 Google earned per share, $6.26 got here from the paper acquire. Without it, revenue regarded extraordinary. The acquire even introduced a $21.9 billion tax invoice.
Wall Street shrugged. In its second-quarter earnings report, Google gave the big acquire only one line. It didn’t even identify the firms. The inventory nonetheless closed down about 1.2%.
Google has accomplished this earlier than. In early 2025, it booked an $8 billion paper acquire the identical quiet manner.
Investors cared extra about spending. Google spent $44.9 billion in three months on AI. It even burned by means of $5.9 billion additional cash than it made. That record AI spending anxious the market. Analysts had flagged the risk earlier than the report.
Most of the SpaceX Stake Is Locked Up
Here is the catch. Google can not simply promote the shares and spend the cash. Its submitting reveals $80 billion of them are locked for now. The relaxation is locked for even longer.
The worth can even drop quick. SpaceX shares jumped above $200 after the IPO. Then they fell to around $114 by July 23. The first shares unlock in August, when SpaceX stories earnings.
So the $94 billion is a superb outcome, not a payday. It is paper revenue, and most of it’s caught for now. The actual check comes when the lockups finish and Google can lastly promote.
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