Alphabet (NASDAQ: GOOGL) turned a $900 million investment in SpaceX (NASDAQ: SPCX) into a stake worth about $94.2 billion, more than 100 times its original investment, according to a Reuters analysis of regulatory filings.
Alphabet invested $900 million in SpaceX in 2015. Its latest filing showed that it held 551.2 million SpaceX shares at the end of June. Those shares were worth about $94.2 billion based on SpaceX’s June 30 closing price of $170.86, making Alphabet the largest single reported institutional holder of the rocket company following its $86 billion IPO in June.
At SpaceX’s Wednesday closing price of $146.15, Alphabet’s disclosed stake would have been worth about $81.8 billion, still roughly 90 times the value of its original investment.
SpaceX Stock Has Pulled Back From June High
SpaceX went public on June 12 at $135 per share. The stock closed Wednesday at $146.15, leaving it 8.3% above its IPO price but 14% below its June 30 close.
The shares have remained actively traded since the IPO. Steve Sosnick, market strategist at Interactive Brokers, told Reuters that SpaceX received a fresh wave of buying last week after concerns surrounding the first lockup expiry did not materialize. SpaceX shares have risen 30% since Aug. 5, according to Reuters.
Retail investors, however, became net sellers on Friday for the first time since the IPO, according to Vanda Research. The firm estimated that retail investors sold a net $4.5 million of SpaceX stock that day.
Alphabet Is the Largest Reported Institutional Holder
Alphabet’s position is substantially larger than those of the other institutional investors identified in the latest filings.
Reported SpaceX holdings at June 30:
- Alphabet: 551.2 million shares
- Gigafund Management: 171.8 million
- Baillie Gifford: 51.4 million
- BlackRock: 51 million
- Ontario Teachers’ Pension Plan: 50.7 million
Together, the five investors accounted for most of the SpaceX shares reported in the 13F filings analyzed by Reuters. However, the filings provide only a snapshot of holdings at the end of the second quarter. They do not show whether these investors have bought or sold shares since June 30.
The filings also do not disclose the investors’ lockup status, or whether they intend to sell shares, Reuters reported.
Alphabet’s SpaceX Investment Stands Out
Alphabet is different from the other institutional holders because it publicly disclosed its original SpaceX investment in 2015. That provides a clear reference point for measuring how much the investment has increased in value.
Alphabet’s $900 million investment has grown to a disclosed position worth $94.2 billion at the end of June, although the value had fallen to about $81.8 billion based on SpaceX’s Wednesday closing price.
The Bottom Line
Alphabet’s early investment in SpaceX has become one of the company’s most valuable disclosed holdings. The $900 million investment made in 2015 was worth about $94.2 billion at the end of June, based on SpaceX’s $170.86 share price. At Wednesday’s $146.15 close, the position was worth about $81.8 billion.
The figures also show how SpaceX’s transition from a private company to a publicly traded business has revealed more about the ownership positions built by its early backers.