Alphabet Invested $900 Million Into SpaceX Back in 2015 -- Here's What That Stake Is Worth Now
Alphabet's investment in SpaceX was a wise move.
Overview
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) was founded in 2015 as the parent company of Google. Since then, it has been a fantastic stock. Powered by its leading digital advertising business and a fast-growing cloud computing segment, the tech leader has posted significantly above-average returns. But one move Google made in 2015, before being absorbed into Alphabet, also deserves some attention. The company invested $900 million in Space Exploration Technologies (NASDAQ: SPCX), which recently broke the record for the largest IPO in history. Here's how that investment has worked out.
Image source: The Motley Fool.
First, some background on SpaceX. The company pioneered reusable rockets and helped significantly decrease the cost of space travel. SpaceX now dominates the market and generates significant revenue from contracts with various U.S. federal government agencies. SpaceX's work has also enabled it to become the leader in the satellite connectivity market. The company's Starlink, a business that offers internet services via a large network of Low Earth Orbit satellites, is currently its only profitable business.
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Originally published at www.fool.com.
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