This "Magnificent Seven" Stock Will Be a Big Winner from the SpaceX IPO (Hint: It's Not Tesla)

1 week ago 6

Keith Speights, The Motley Fool

Tue, April 21, 2026 astatine 3:28 AM CDT 4 min read

What's the cardinal communal denominator betwixt SpaceX and Tesla (NASDAQ: TSLA)? That's an casual question. The answer, of course, is Elon Musk. The world's richest idiosyncratic founded SpaceX and runs Tesla.

Musk volition soon pad his tremendous wealthiness adjacent more. SpaceX plans to spell nationalist successful the adjacent fewer months astatine a valuation reported to beryllium adjacent $2 trillion. Musk won't beryllium the lone aboriginal capitalist to marque a batch of wealth from the abstraction exertion company's IPO. One "Magnificent Seven" banal volition besides beryllium a large winner. But it's not Tesla.

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Satellites successful  orbit with world  successful  the background.

Image source: Getty Images.

Although Musk has a idiosyncratic involvement successful SpaceX, Tesla hasn't invested successful the company. However, Google genitor Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) made a astute aboriginal stake connected SpaceX that's astir to wage disconnected big-time.

In 2015, Alphabet (then named Google) invested astir $900 cardinal successful SpaceX, alongside Fidelity (NYSE: FNF). At the time, SpaceX was valued astatine astir $12 billion, giving Google a 7.5% involvement successful the abstraction tech company. Over the past 11 years, SpaceX has issued much shares, diluting Google's presumption somewhat.

However, a caller regulatory filing successful Alaska revealed that Google inactive owned 6.11% of SpaceX astatine the extremity of 2025. Assuming the institution hasn't sold immoderate of its shares since past and SpaceX's IPO valuation is $2 trillion, its involvement volition beryllium worthy astir $122.2 billion.

Let's enactment Google's stake connected SpaceX into perspective. An archetypal concern of $900 million, increasing to $122.2 billion, yields a astir 136x return. This summation translates to a compound yearly maturation complaint of astir 56.3%. Google's concern successful SpaceX appears to beryllium its champion woody since the acquisition of YouTube successful 2006. That's saying a lot.

Alphabet isn't conscionable scoring from what's connected way to beryllium the biggest IPO banal ever based connected marketplace cap. The institution volition besides person aggregate ancillary benefits from SpaceX securing further superior to money its enlargement plans.

For example, SpaceX's Starlink portion is simply a Google Cloud customer. SpaceX inked a woody with Google Cloud successful 2021 that allows it to instal crushed stations astatine Google information centers. These crushed stations link to Starlink satellites.

Starlink provides outer net work to galore areas astir the satellite that would different person nary net access. More net entree means much radical volition usage applications hosted connected Google Cloud.

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