Google Dumps $94 Billion on SpaceX, Boosts Price Target to $222.16
Google has made a massive investment in SpaceX Corporation, pouring $94 billion into the company. This is a 100-fold increase from Google's initial $900 million investment in Musk's brainchild.
The move makes Google the largest single institutional holder of SPCX stock and signals that the tech giant sees durable value in the company's platform.
SpaceX has already gained significant attention on Wall Street since its massive IPO, with analysts awarding it a consensus 'Moderate Buy' rating. Of the 34 analysts rating the stock, 23 have given it a 'Strong Buy', and the consensus price target of $222.16 represents a 59.2% upside from current levels.
The company's revenue has been driven by its Starlink satellite-internet network and AI cloud deals, with sales growing 91.9% year-over-year to $7.81 billion in Q2. However, the company's forward-adjusted price-to-sales ratio of 42.34 times is exceptionally stretched compared to its peers.