Alphabet discloses $94 billion restricted stake in SpaceX

Alphabet has disclosed a restricted equity stake in rocket manufacturer SpaceX valued at $94.1 billion as of June 30, 2026. The revelation, appearing in the company’s quarterly filing with the Securities and Exchange Commission, highlights an investment journey that began in January 2015 when Google and investment firm Fidelity initially invested $1 billion for a combined stake of just under 10%. While SpaceX now carries a market valuation of $1.5 trillion, Alphabet is currently unable to liquidate its position.

The company confirmed that its holdings are subject to significant lockup restrictions. According to the filing, $80 billion of the position is bound by short-term restrictions typical of post-IPO lockup periods, while the remaining $14.1 billion is restricted through the third quarter of 2027. This limitation means that despite the paper value of the stake, the company cannot access these funds to support its ongoing capital expenditure programs.

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Impact on Financial Reporting

The SpaceX stake significantly influenced Alphabet’s second-quarter financial results. The company reported a 298% year-over-year increase in net income to $112.1 billion, a surge driven by $99.0 billion in unrealized gains on equity securities. In addition to SpaceX, these gains reflect holdings in private entities, including artificial intelligence developer Anthropic. Despite these reported gains, Alphabet’s free cash flow shifted to negative $5.9 billion for the quarter, down from $10.1 billion in the first quarter of 2026. Simultaneously, the company increased its capital spending guidance for 2026 to a range of $195 billion to $205 billion, an increase from the $180 billion to $190 billion range set in April 2026.

Market Reactions and SpaceX Valuation

Alphabet shares declined approximately 7% following the report. The company recently raised $49.6 billion through new stock sales in June 2026, even while holding the restricted SpaceX position.

For SpaceX, the disclosure serves as a dual-edged signal. The continued holding by a major investor is viewed as a vote of confidence, as Alphabet still maintains an effective stake of about 4.9% of the company, down from about 6% before recent dilution. SpaceX shares have experienced volatility since their public debut, falling nearly 49% from their peak price of $225.64 to approximately $116.

Broader Market Context

The disclosure comes amidst a volatile period for global financial markets, characterized by rising energy prices and inflationary concerns. Brent crude has surged nearly 40% in July 2026, trading at $100.85 a barrel, following the collapse of a truce in the Middle East. These economic pressures have led markets to price in a potential rate hike from the Federal Reserve.

Other technology companies have faced similar scrutiny regarding capital expenditure. Intel reported a 25.4% surge in second-quarter sales and raised its 2026 capital expenditure forecast to $20 billion, up from $18 billion. Despite this, Intel shares have declined more than 25% from a record close on June 22, 2026.

What to Watch Next

• August 4, 2026: SpaceX is scheduled to deliver its first earnings report.
• 2027 Timeline: The remaining $14.1 billion of Alphabet's stake remains under restriction until the end of the third quarter of 2027.
• Capital Allocation: Market observers are monitoring whether Alphabet will maintain its large-scale investment in SpaceX or consider divestment to fund its expanding data center and AI initiatives, especially as the company navigates negative free cash flow.