Alphabet Just Revealed Its Big Stake in SpaceX
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Alphabet Just Revealed Its Big Stake in SpaceX

Yahoo! Finance4d ago
  • Alphabet disclosed in its earnings report that it had roughly $94.1 billion worth of SpaceX stock at the end of the second quarter.

  • Tesla reported it held about $3 billion worth of SpaceX shares; Nvidia and Cisco are also likely shareholders.

SpaceX's list of shareholders includes a who's who of big tech companies.

Google parent company Alphabet (GOOG) disclosed that it had a SpaceX (SPCX) stake worth about $94.1 billion as of the end of June, according to its second-quarter earnings report. Based on SpaceX's market cap at the end of the second quarter, or $2.2 trillion, Alphabet's investment represents about 4%.

Tesla (TSLA) also disclosed a stake in SpaceX, albeit a more modest one worth $3 billion, per its second-quarter earnings report. Nvidia (NVDA) and Cisco (CSCO), are also likely shareholders given their early investment in xAI, which merged with SpaceX in February.

Why This Matters to You

Ordinary investors likely have a position in SpaceX in their retirement portfolios because the stock was added to major indexes and the funds that track them.

Alphabet disclosed that it had two tranches of SpaceX shares, with $80 billion worth subject to "short-term restrictions on the ability to sell," according to the company. The rest, or some $14.1 billion is restricted for trading through the end of September 2027, filings show.

The tech companies' respective stakes in SpaceX are likely a touch lighter given the stock's recent decline. Shares closed Thursday at around $118, almost 13% below its IPO price of $135 -- a boon for some investors who bet that the stock would decline.

Early investor status, however, does put the spotlight on the coming wave of lock-up expirations that could free them up to trade their shares. The first of a series of staggered releases is set to occur on August 6, two days after SpaceX reports earnings for the first time as a public company.

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Originally published by Yahoo! Finance

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