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Im Juni 2026 vereinbarten Walmart und Alphabet-owned Wing, ihr Drohnen-Lieferungspartnerschaft auf sieben weitere US-Metropolregionen auszudehnen. Gleichzeitig setzte Walmart mit ultra-schnellen Lebensmittel- und Restaurantlieferungen sowie der Einführung von Premium-Angeboten wie dem McClaren Farms Smokehouse Angus Rinderfilet in Texas fort. Diese Schritte zeigen, wie Walmart Technologie und höherwertige Produkte nutzt, um die Benutzerfreundlichkeit zu erhöhen und sein Angebot für höhere Einkommenshaushalte zu erweitern.

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Waymo, Alphabet's autonomous driving unit, acquired Apple's former self driving test facility in Arizona, expanding its access to a dedicated proving ground. Alphabet (NasdaqGS:GOOGL) is playing a central role in Anthropic's US$35b AI data center financing, supplying chips and acting as a financial guarantor. These moves link Alphabet more closely to both physical mobility networks and large scale AI infrastructure build outs.

Alphabet, through Waymo and Google Cloud, now touches two core parts of the AI story: on the road and in the data center. Waymo's new Arizona facility adds controlled testing capacity for robotaxis at a time when autonomous driving projects are competing for real world mileage, regulatory attention and reliable safety records.

On the AI side, Alphabet's chip supply and guarantees for Anthropic's US$35b data center plan put the company deeper into the stack that underpins training and running advanced models. For you as an investor, a key question is how this mix of capital heavy infrastructure ties, long term AI partnerships and autonomous vehicle testing affects Alphabet's risk profile and business mix over time.

Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page.NasdaqGS:GOOGL Earnings & Revenue Growth as at Jun 2026

3 things going right for Alphabet that this headline doesn't cover.

Waymo's purchase of Apple's former Arizona proving ground and Alphabet's role in Anthropic's US$35b data center financing both point to the same thing for you as a shareholder: a deeper commitment to capital heavy AI infrastructure and applied autonomy. The Arizona facility gives Waymo a controlled environment to test complex city, highway and edge cases at scale, which can be important for regulators and partners assessing safety records. On the cloud side, backing Anthropic's leases and supplying the chips ties Google Cloud more tightly to a large third party AI model provider, while also increasing Alphabet's exposure to long dated compute contracts.

How This Fits Into The Alphabet Narrative

The Anthropic financing and Waymo expansion line up with the narrative that Alphabet is building a full stack AI platform, from TPUs and data centers to applied services like Gemini and autonomous driving. Both moves also underline concerns already raised in the narrative about heavy infrastructure spending and unprofitable new ventures, since robotaxis and multi year AI capacity deals can weigh on margins if monetization lags. The specific risk of Alphabet acting as a financial guarantor for third party data center leases is not fully spelled out in the narrative, even though it can affect Alphabet's risk sharing with partners like Anthropic.

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Knowing what a company is worth starts with understanding its story.Check out one of the top narratives in the Simply Wall St Community for Alphabet to help decide what it's worth to you.

The Risks and Rewards Investors Should Consider

⚠️ Large, long term guarantees around Anthropic's data center leases increase Alphabet's exposure if Anthropic's usage, pricing or funding environment changes, especially as other hyperscalers like Microsoft and Amazon also compete for AI workloads. ⚠️ Waymo's expanded testing footprint can add ongoing costs in a business that has generated operating losses and faces regulatory, safety and competitive pressure from players such as Tesla and General Motors' Cruise unit. 🎁 Deeper integration with Anthropic's AI stack can support Google Cloud's position when enterprises choose between providers, potentially reinforcing demand for Alphabet's custom chips and AI services in a market that includes Amazon Web Services and Microsoft Azure. 🎁 The dedicated Arizona proving ground may help Waymo collect higher quality safety and performance data, which can be valuable when seeking approvals, partners or commercial agreements in robotaxis and logistics.

What To Watch Going Forward

From here, keep an eye on how Alphabet discloses the scale and terms of its Anthropic related guarantees, including any impact on balance sheet commitments and cash flows, and how much Anthropic contributes to Google Cloud usage. For Waymo, watch for updates on regulatory milestones, partnership deals, and any detail on how often the Arizona site is used relative to on road testing. Comparing Alphabet's AI and autonomous vehicle spending to reported profitability and cash generation over time will help you judge whether these partnerships and acquisitions are strengthening the overall business mix or stretching returns on capital.

To ensure you're always in the loop on how the latest news impacts the investment narrative for Alphabet, head to the community page for Alphabet to never miss an update on the top community narratives.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include GOOGL.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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(Bloomberg) -- The US Justice Department has closed its antitrust probe into Paramount Skydance Corp.'s $110 billion purchase of Warner Bros. Discovery Inc., according to people familiar with the decision.

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The federal antitrust agency didn't require any changes to the deal, which it had been reviewing for the past several months, according to the people, who asked not to be identified discussing a decision that hasn't been publicly announced.

A group of state attorneys general, led by California, have also been probing the transaction, which would combine two of the five largest Hollywood studios. The states are preparing to sue to block the merger, Bloomberg previously reported.

Justice Department didn't have an immediate comment. Paramount didn't immediately respond to an email seeking comment.

The Justice Department's clearance was expected. The agency under President Donald Trump hasn't sought to block a deal, instead preferring to enter into settlements or allowing mergers to proceed with no conditions.

Paramount head David Ellison met with top antitrust officials, including Acting Assistant Attorney General for Antitrust Omeed Assefi, last month about the deal, according to several people familiar with the meeting. Ellison is the son of Oracle Corp. co-founder Larry Ellison, who is close to Trump.

At the meeting, company executives and lawyers argued the deal would benefit Hollywood and allow the merged entity to better compete against the online streaming services like Netflix Inc., Amazon.com Inc.'s Prime Video and Alphabet Inc.'s YouTube.

Combining Warner Bros. and Paramount would join the two movie studios, two major news networks in CNN and CBS, two rival streaming services with HBO and Paramount+ and dozens of cable networks. Paramount beat out Netflix for the deal after a lengthy bidding war.

The acquisition faces major opposition from Democrats in Washington and many in Hollywood, with actors, directors, producers and writers arguing that the tie-up would result in fewer jobs, higher production costs and less choice for audiences.

Politico earlier reported the Justice Department move.

(Updates with additional details beginning in fifth paragraph.)

Story Continues

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Check out the companies making headlines this week:

DraftKings (NASDAQ:DKNG): Fantasy sports and betting company DraftKings (NASDAQ:DKNG) rose by 5.7% on Wednesday after the company disclosed significant growth in its Predictions platform for the month of May. See our full article here.

Is now the time to buy DraftKings? Access our full analysis report here, it's free.

Intel (NASDAQ:INTC): Computer processor maker Intel (NASDAQ:INTC) rose by 12.1% on Monday after The Information reported that Google placed a firm order for more than 3 million of its tensor processing units to be manufactured by Intel in 2028, while Nvidia is running early trials on Intel's most advanced 18A process for its next-generation Feynman GPU architecture. See our full article here.

Is now the time to buy Intel? Access our full analysis report here, it's free.

Brinker International (NYSE:EAT): Casual restaurant chain Brinker International (NYSE:EAT) rose by 6.8% on Thursday after an analyst at TD Cowen raised their price target on the stock and the company's CEO expressed confidence in its performance, citing sustained sales growth at its Chili's brand. See our full article here.

Is now the time to buy Brinker International? Access our full analysis report here, it's free.

FuelCell Energy (NASDAQ:FCEL): Carbonate fuel cell technology developer FuelCell Energy (NASDAQ:FCEL) fell by 11.2% on Monday after it reported Q2 fiscal 2026 results that missed on every financial metric, including revenue, loss per share, gross margin, and backlog. See our full article here.

Is now the time to buy FuelCell Energy? Access our full analysis report here, it's free.

Robinhood (NASDAQ:HOOD): Financial services company Robinhood (NASDAQ:HOOD) rose by 6.4% on Wednesday after it received regulatory approval for its securities division to operate as an underwriter for initial public offerings (IPOs), alongside several other positive catalysts. See our full article here.

Is now the time to buy Robinhood? Access our full analysis report here, it's free.

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(Bloomberg) -- SpaceX decided to rent out the full capacity of its Colossus 1 data center in Memphis to Anthropic PBC after encountering technical challenges using the facility to develop and run its Grok artificial intelligence models, according to people familiar with the matter.

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Elon Musk's company had planned to train its most cutting-edge AI models on a massive amount of computing power by using a cluster of three data center campuses. However, the firm encountered latency issues when connecting Colossus 1 with two other sites located more than 10 miles away, the people said, compounded by aging network infrastructure.

Training bigger and better AI models requires ultra-fast connections. If the links between facilities are older or lower bandwidth, it can create delays that slow the entire data center cluster. Rather than continue trying to work through these limitations, SpaceX determined the facility would be more valuable serving other companies and creating a new revenue stream, said the people, who spoke on condition of anonymity as the information is not public.

SpaceX, which acquired Musk's xAI earlier this year, has made its data center build-out a key part of the pitch to investors during the roadshow for its blockbuster initial public offering. Anthropic and Alphabet Inc.'s Google have each struck computing deals with SpaceX potentially worth tens of billions of dollars over several years, bolstering the rocket maker's move to become more of an AI infrastructure provider.

Yet, the shifting plans for Colossus 1 also hint at the difficulties in Musk's ambitious and costly efforts to rapidly build out a sprawling group of data centers, stocked with advanced chips, to support AI. Musk's company had long stressed that its first Colossus facility was built in just 122 days, exceeding its own estimates and industry averages.

Representatives for SpaceX, which is formally known as Space Exploration Technologies Corp., didn't respond to a request for comment.

In addition to latency issues, the attempt to integrate Colossus 1 with the other facilities was complicated by hardware variations, the people said. The facility contains a mix of Nvidia Corp. chip generations, including Hopper and Blackwell systems, as well as some older accelerators, which are the processors used for AI work, the people said. Colossus 2 and 3 were built more uniformly around Nvidia's Blackwell chips, the people said.

Story Continues

In data center clusters, the workload is spread across many machines that need to stay synchronized. If one facility has older chips, it can create bottlenecks for the other locations by forcing faster accelerators to wait. The result is the cluster ends up performing closer to the slowest hardware rather than the fastest.

By leasing the facility's capacity, the company was able to monetize infrastructure that was not being fully utilized internally while preserving newer facilities for AI development. SpaceX Chief Financial Officer Bret Johnsen recently said the company has not given up on its own internal AI services, such as Grok.

Musk has also said SpaceX reserves the right to cut its computing deal with Anthropic short, after providing them with advanced notice. "If compute gets super tight I said we might need it back at some point," he said.

--With assistance from Carmen Arroyo.

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Key Points

Investors were scrambling to get in on the ground floor of the SpaceX IPO. The stock began trading 11% above its offering price and was lately up 27%. That puts its market cap at roughly $2.2 trillion, making it one of the world's most valuable companies. 10 stocks we like better than Space Exploration Technologies ›

The day many investors have been waiting for has finally arrived. The much-ballyhooed initial public offering (IPO) of SpaceX (NASDAQ: SPCX) kicked off on Friday morning. Expectations were high heading into what has been billed as the biggest IPO of all time, and the stock made a splash on its debut.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

Demand was high ahead of the event, with the SpaceX IPO more than four times oversubscribed, according to Bloomberg. Put another way, there was four times as much demand as shares available. The offering was priced at $135 per share, with plans to sell more than 555 million shares, raising $75 billion for the company. This would have valued SpaceX at a record $1.77 trillion, which would have made it the world's ninth-most-valuable company.

Those estimates proved conservative, as SpaceX opened comfortably above the offering price. The stock began trading at 11:46 a.m. ET at $150, up about 11% from its IPO price. Here's how the historic IPO played out.

Image source: Getty Images.

We have liftoff

Excitement was palpable ahead of SpaceX's debut. CEO Elon Musk rang the Nasdaq opening bell remotely from Texas ahead of the historic offering. At the same time, CFO Bret Johnsen and President Gwynne Shotwell appeared at the stock exchange in New York to mark the occasion.

Retail investors had placed orders for more than $100 billion worth of stock. That was far more than the total shares available -- and that didn't even include institutional orders, which would receive the majority of the offering. The company was expected to allocate roughly 20% of the available stock to individual investors, meaning that most people who had submitted a request would receive far less than they had asked for.

That total percentage of stock allocated to retail investors may have been lower. Anecdotal reports suggest that some investors received between 3% and 7% of their request on popular trading platforms, including Charles Schwab, Morgan Stanley's E*TRADE, SoFi, Robinhood, and Fidelity.

That left many investors out in the cold, looking to buy SpaceX shares or buy more shares. As a result, many turned to the open markets when trading began, driving the share price even higher.

As I write this, SpaceX stock has climbed as high as $176.49, or roughly 31% above the offering price, though it's currently up 27%, as of 1:36 p.m. ET. That values the company at more than $2.2 trillion, making it the world's sixth-most-valuable company, ahead of Taiwan Semiconductor Manufacturing at $2.2 trillionand below Amazon at $2.5 trillion -- though those rankings could change before the day is out.

What happens now?

To be clear, SpaceX has a lot to live up to. In 2025, the company generated revenue of $18.67 billion, up 33% year over year, largely driven by its Starlink satellite internet and mobile connectivity business, its only profitable business segment at this point.

However, SpaceX has signed two notable contracts in 2026, reaching agreements with Alphabet(NASDAQ:GOOGL)(NASDAQ:GOOG) and Anthropic to supply them with computing capacity from its xAI segment for $920 million per month and $1.25 billion per month, respectively.

The math suggests the company is on track to generate revenue of $45 billion in 2026, giving it a price-to-sales ratio of 45. While that's much more reasonable than the multiple of nearly 100 a few weeks ago, the valuation still has a long way to go before most investors would consider it "reasonable."

Should you buy stock in Space Exploration Technologies right now?

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Charles Schwab is an advertising partner of Motley Fool Money. Danny Vena, CPA has positions in Alphabet, Amazon, and SoFi Technologies. The Motley Fool has positions in and recommends Alphabet, Amazon, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Charles Schwab and recommends the following options: short June 2026 $97.50 calls on Charles Schwab. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The march of trillicorn initial public offerings doesn’t portend doom for investors. But it’s worth keeping an eye on just the same.

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Scott Melker is joined by Phong LeStrategy CEO discusses all things bitcoin.

"The Daily Wolf with Scott Melker" airs every day at 12:00 p.m. Tune in for your daily dose of all things crypto.

Video Transcript

00:00 Scott Melker

There may be no more hotly debated company on Wall Street right now than strategy. They hold 845,000 Bitcoin, about 4% of all that will exist and have an entire capital stack around it. To Bulls, it's genius, but the skeptics are out in droves. We're going to get the truth straight from the horse's mouth from Fong Lee, the president and CEO. Let's go.

00:27 Scott Melker

What is up everybody? Welcome to the Daily Wolf on Yahoo Finance. I'm your host Scott Melker, also known as the Wolf of All streets and we've only got 15 minutes, so I'm going to go ahead and bring on Fong Lee right now. Fong, how are you doing? Welcome to the show.

00:43 Fong Lee

I'm doing great Scott, thanks for having me.

00:46 Scott Melker

So I'm glad that we got this rare opportunity to speak. We obviously don't often do interviews and guests here, but I figured this was the best opportunity to get the truth straight from the horse's mouth. So I want to start with the 845,000 Bitcoin you hold, which is, you know, roughly 4% of all the Bitcoin that will ever exist.

01:06 Scott Melker

I mean, to put that in perspective for people, where does that rank against other companies, funds, even countries?

01:13 Fong Lee

Well, there was a point in time when we and Ibit were pretty close, and Ibit seen quite a bit of outflows, uh, in the last 30 days or so. So we are now by far and large, the largest corporate and now the largest holder, identified holder of Bitcoin in the world, and we plan to stay that way.

01:31 Scott Melker

You've obviously created an entire preferred stack. You know, STRC, STRF, STRK, STRD. seems that this is the new focus of the company to some degree and I spoke very candidly about that with Michael uh at Vegas Money 2020.

01:50 Scott Melker

What is digital credit to you and why are traditional fixed come investors and other retail investors buying it?

01:57 Fong Lee

Oh, there's the advantages of digital credit to us, uh the company, strategy. There's advantages of digital credit to the purchasers and there's advantages of digital credit to Bitcoin. Uh to us the company, uh we want to be able to raise capital that is non-dilutive, uh that also uh does not have maturity and duration risk and preferred capital is actually perfect for that. right? I'll give you an example. There's more recently, uh Google last week raised 80 billion dollars of capital and a large portion of that used uh preferred uh capital uh in that case convertible. And when you have you want to invest into something that has a long duration that is uncertain what the return profiles are, is it one year, two years, three years, four years, IAI, prefer capital is actually perfect for that.

02:47 Fong Lee

So, if you now take that analogy of what does AI look like? high capital investment, right, the underlying is something everybody believes in, but the return profile is uncertain, that's what Bitcoin is. All right? So for us, strategy, preferred capital in this case perpetual preferred is perfect for a Bitcoin investment, unlike convertible bonds that have a maturity of anywhere between three and eight years. Uh, and even better than capital, uh, as equity, which is immediately deluted to to us. So that's why it's good for us.

03:12 Fong Lee

Uh why is it good for for somebody who an investor, right? Where else can you get something that is an 11 half percent tax deferred cash pay dividend yield, used to be monthly, now it's twice a month. Okay? And on top of that have something that's significantly overcollateralized in our particular case four to five times X over stretch. Um, it doesn't exist out there. Too good to be true. In this particular case, no, I don't think it's too good to be true. The only challenge with the product maybe is it's 10 years old or 10 months old, needs a maturity and to prove itself over time. and it's a fairly low volatility product. So that's the second piece. A third, why is it good for Bitcoin? There's a lot of debate for this.

03:52 Fong Lee

Ultimately, as much as I like to believe everybody fully understands the bull case for Bitcoin, right? and everybody wants a non-sovereign decentralized store value asset. When I go to a cocktail party in Washington DC, 9 out of 10 people look at me when I say I'm a Bitcoin person as if I'm having either a political conversation or it's too complicated for them, right? And those 9 out of 10 people should have access to Bitcoin.

04:22 Fong Lee

They have a right to have access to Bitcoin. And they're not going to do it by, you know, opening up a coinbase account, they're certainly not going to do it with a self-custody solution. They're not going to do it even through Ibit. They're definitely not going to do it through MSTR. Those people should be on board to Bitcoin and everybody should be happy with that as an outcome if you're a Bitcoiner.

04:40 Scott Melker

I totally agree. So, on the Q1 earnings call, you alluded to using the full range of capital tools and that included the discipline sale of Bitcoin and I think uh, you know, Saylor famously said that he would use a small sale of Bitcoin to inoculate the market, right? You said you were going to do it, weeks before you did it. You sold a simply 32 Bitcoin, a very small amount, which obviously was bought back in much greater size immediately.

05:01 Scott Melker

You planned it, but the I guess naysayers are saying that it was a forced sale that indicates that you will continue to be a forced seller. So how do you dispel that myth?

05:13 Fong Lee

We said we were going to do it, right? We have $52 billion dollars worth of Bitcoin on our balance sheet. At some point in time we have to put it to work. Uh and to put it to work one option is is to sell it, right? And so we sold less than 1% of 1% of our Bitcoin. Uh and we thought two and a half billion dollars or two and a half million dollars, 32 Bitcoin was a reasonable amount. Um, why did we do it? One, to inoculate the market.

05:32 Fong Lee

What does that mean is is to indicate to all classes of shareholders and stakeholders of strategy that we're willing to sell our Bitcoin, right? Two, uh to test our processes and three, to to give ourselves the opportunity for future tax loss harvesting. It's really that simple. Uh, we did not sell it because we needed to sell it to meet our cash dividend obligations of $100.5 million dollars. If we did, we would have sold a lot more than two and a half million, right? and and so there there's there's talk out there they did it to satisfy the dividend. No, we didn't do it to satisfy our dividend. We did it to to one, inoculate the market, two, test our processs and three, be able to capture future tax loss.

06:03 Scott Melker

I mean, isn't satisfying the dividend like $1.6 billion dollars a year or something? you sold 32 Bitcoin.

06:08 Fong Lee

It's $1.7 billion a year we sold 32 Bitcoin. By the way, $1.7 billion a year sounds big to most people, right? Our equity, which is primarily how we satisfy our dividends, trades about $2.7 billion a day. Right? So it would take about four hours of full selling into the market of our equity, right? Obviously we didn't wouldn't do it in a four-hour window, but that's four hours of a day of trading volume to satisfy our $1.7 billion cash dividends.

06:40 Fong Lee

So it's really not, you know, I I don't I don't lose sleep at night wondering how are we going to pay our dividends. So that's that's like so really low on the list of risk to the company.

06:51 Scott Melker

Right. and you've still built a USD reserve up that at one point gave years of dividend coverage. And I think the same critics are screaming loudly because you closed one of those convertible notes and that uh cash reserve went down, even though you raised another 100 million this week. So is this something you're doing to batten down the hatches? Is it a signal to the market? Do you need a cash reserve or is it just something the market's demanding? I mean, why the cash reserve?

07:16 Fong Lee

Yeah, so so first, why the cash reserve? Mathematically, I do not believe I need a cash reserve for the reasons you mentioned. Now, from a risk perspective and to satisfy those sort of four different stakeholders, our common, our preferred, our Bitcoin and our debt holders, especially our debt holders, right? and our stretch holders. They feel that it's less risky to have a cash reserve, right? Like what if Bitcoin was to crash by 90%? We would have two and a half years or whatever it is, right? So we took the two point two five billion down to north of 700 million. Why did we do it? Because at that point in time, that was the best way to buy back our converts of one and a half billion dollars.

07:49 Fong Lee

Look, we've also said we're going to bring it right back up, right? And we've done it 100 million dollars at a at a time so far last week, right? And by the way, we also bought 100 million dollars of Bitcoin last week right after we sold two and a half million. No nobody talks about the purchase of a million hundred million, they talk about the sale of two and a half. But it's uh we'll bring the cash dividend, well sorry, we'll we'll bring the cash reserve back up and refresh it over time because it satisfies our debt holders and our stretch holders.

08:16 Scott Melker

The criticism there has been that this one week's action has been dilutive to strategy shareholders, but if you obviously zoom out over any meaningful period of time, you know, that that number has only gone up. So how do you address that?

08:30 Fong Lee

Every year since the and and and look I we we take week to week actions, but we think strategically year to year and really long-term we think in four or five year time horizons, right? And and so are we increasing Bitcoin per share every single year, the answer is yes. The best year was 2024, we increased it 77%. Last year we increased it 30, 23%. This year year to date we've increased 12%, right?

08:58 Fong Lee

And we went from 13% down to 12%, right? And and so there will be weeks that we're going to be taking actions that reduce Bitcoin per share and weeks that we increase. Big question is, you know, every single year are you increasing, right? Like if you look at the capital outlays of a company, right? Like that that's why you have capital investments and operating expenses, right? Like if you were to if you if you look at a cash flow of a highly capital intensive company, you'll have weeks and months where the cash flow dips, weeks and months where it increases. But the question is over the course of the year are you cash flow positive and really for them, maybe you're making a capital investment that's 500 million dollars in one year, right? And you see returns of one and a half billion dollars over three years. That would be accretive.

09:42 Fong Lee

Now we're talk about a week to week, you know, and and we choose to disclose this week to week. We don't have to. Right. That is a voluntary disclosure. What we have to do is disclose quarter to quarter. Uh and with the weekly disclosure and the greater transparency, we get more scrutiny and and I think over time hopefully more maturity from all of our constituents.

10:07 Scott Melker

The list of things I keep hearing, obviously STRC is trading below par, which prefs do. Uh and that's they're designed to be able to. So for people who don't, I guess live in this space, what does that signal and what does it not? What does it mean when something is trading below par and you know, what happens if it's not immediately back to 100?

10:24 Fong Lee

So so it's an equity first of all, right? It is a preferred equity, right? It's not debt and it's definitely not a money market even though some people are using it in place of a money market. It's definitely not that, right? And so although it's designed to trade within a tight window of par, 99 to 101, there will be times when it doesn't. And here I'll I'll give you an interesting stat, right? Total shareholder holder return. Bitcoin from October when it started decreasing to now is down 50%. That's the TSR of Bitcoin.

10:46 Fong Lee

The TSR of stretch during that time up 4%, right? So even though stretch is now trading whatever today at 96 cents on the dollar, right? That means it's down 4% during that period, but when you take the 11 and a half percent dividend that's paid over the last 10 months, that's up 8%. So if you're a shareholder of stretch over that period of time, you're up 4%, right? It is designed to have Bitcoin as the underlying

11:08 Fong Lee

and to have stable, fairly stable price and to give you a return of 11 and a half percent over the course of the year. Uh I would argue it's it's done basically that. Uh and you know, if I told you in October, I'm going to I'm going to design an instrument with Bitcoin as the underlying. Bitcoin's going to go down 50%, I'm going to give you a 4% TSR. Would you believe me?

11:26 Scott Melker

No.

11:27 Fong Lee

Yeah, well we've done it, right? And so uh now, last couple weeks it's gone down because Bitcoin's gone down, but it'll come back up, right? We we have the mechanisms to do so. We could increase the dividend, right? uh as an example, we could shore up the US dollar reserve if that's what's important to people. But you know, I I I have a strong belief one, we'll continue to pay the dividends and two, it'll trade back at par.

11:45 Scott Melker

I wish we had more than two minutes left, so I'm going to ask you the good one for the sound bite. What would it take for you to actually be a forced seller of Bitcoin, which is what the critics keep screaming about? And then I guess as a Cory, what are people just completely getting wrong that you're seeing in the narrative?

11:58 Fong Lee

The the the the the most realistic scenario of us being a four seller of Bitcoin is we have about three and a half billion dollars of prefers that come due in 2028, right? with a high strike price over $400. If at that point in time but Bitcoin has lost uh a significant amount of its value, our share price is depressed, we would sell the Bitcoin potentially to satisfy the convert. Now, that's a I'll call it an edge case because we could also just refinance those converts. We could equitize them, right? That that's, you know, we're talking 2028, we're talking two years out.

12:33 Fong Lee

I don't see any scenario until then that we become a forced seller of Bitcoin. And even then we have other opportunities and options. And and if you're a believer in Bitcoin, which I am, right? Bitcoin's not going to go down significantly between now and then, we're about to enter another bull cycle.

12:49 Scott Melker

I agree. So I we got about 45 seconds. What's the one thing people are just totally getting wrong in the narrative?

12:54 Fong Lee

Uh, I I think big picture zoom out. We've been doing this for six years. We've outperformed Bitcoin by 50% in the last six years. Right? And so so if you believe in Bitcoin, we are amplified Bitcoin. Bitcoin's been up 37%, we've been up north of 40, closer to 50% during that period of time. We've outperformed every company in the Mag 7 except for Nvidia out of all of them, right?

13:19 Scott Melker

Incredible. Well, Fong, thank you so much for coming on and giving us the information straight. We deeply appreciate it and uh we'll all be watching closely. Everybody else will see you back on Monday.

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With the stock trading and early Wall Street estimates rolling in, it's possible to reexamine SpaceX fundamentals. SpaceX shares were at $166 in midday trading on Friday, up nicely from their $135 IPO price. The valuation is also about 220 times estimated 2026 earnings before interest, taxes, depreciation, and amortization, or Ebitda, of $10 billion and 96 times estimated 2027 Ebitda of $23 billion.

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Quick Read

Oppenheimer initiated SpaceX with an Outperform rating and $190 price target, implying roughly 40% upside from its $135 IPO price. SpaceX generated $48 billion in revenue across four mutually reinforcing segments: Starlink, launches, AI compute, and Grok. Cloud giants will collectively spend over $700 billion on AI infrastructure in 2026, and SpaceX's Starlink network positions it to capture a share. Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

The IPO market has spent years searching for a company capable of reigniting investor enthusiasm. SpaceX (NASDAQ:SPCX) may be that company. After debuting in the largest IPO in history, the aerospace and AI giant immediately became one of the market's most closely watched stocks. While many IPOs struggle to justify lofty valuations, at least one Wall Street analyst believes SpaceX is only getting started.Joe Raedle / Getty Images News via Getty Images

Oppenheimer initiated coverage with an Outperform rating and a $190 price target, implying roughly 40% upside from the company's $135 IPO price. More importantly, the firm's bullish case isn't based on hype. It rests on multiple businesses that are growing simultaneously and could reinforce one another over the next decade.

More Than Just a Rocket Company

Many investors still think of SpaceX primarily as a launch provider. That's increasingly outdated.

According to SpaceX's IPO prospectus, the company generated $47.8 billion in revenue over the last 12 months. What makes the story unusual is that revenue comes from several fast-growing businesses rather than a single product.

Segment Estimated Revenue Contribution Starlink Broadband Largest contributor Launch Services Core aerospace business AI Compute Infrastructure Rapidly expanding Grok AI Platform Emerging growth driver

Oppenheimer's thesis centers on the idea that SpaceX deserves a premium valuation because these businesses complement each other. Starlink provides global connectivity. The launch business continues deploying satellites at a scale competitors struggle to match. Meanwhile, AI services create an entirely new growth engine.

Here's what the numbers tell us. At its IPO valuation of approximately $1.78 trillion, SpaceX traded at roughly 37 times trailing revenue. That sounds expensive until investors compare it with leading AI companies that command premium valuations despite having far slower revenue growth.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Story Continues

The AI Opportunity May Be Larger Than Investors Realize

The most interesting part of the SpaceX story may be its AI ambitions. The company already operates one of the world's largest distributed computing and networking platforms through Starlink. That infrastructure creates opportunities that few competitors can replicate.

One potential catalyst is larger AI compute contracts. Cloud giants such as Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG) and Meta Platforms (NASDAQ:META) are collectively expected to spend more than $700 billion on AI infrastructure in 2026. If SpaceX captures even a small portion of that spending through compute partnerships, revenue growth could accelerate beyond current forecasts.

Grok represents another opportunity. Today, most investors focus on OpenAI's ChatGPT and Anthropic's Claude. Yet Grok has an enormous distribution advantage through integration across the SpaceX ecosystem and affiliated platforms. Increased enterprise adoption, subscription growth, and AI agent deployments could create a recurring revenue stream that resembles software economics rather than aerospace economics.

Surprisingly, AI may eventually contribute more to profits than launches. Rocket launches are capital intensive. Software subscriptions generally are not.

Why the Bull Case Isn't Guaranteed

Granted, investors should keep expectations realistic. SpaceX already carries a valuation larger than the entire market capitalizations of many Fortune 500 companies combined. Sustaining growth becomes harder as companies scale.

Competition is also intensifying. Amazon's Project Kuiper continues building its satellite network. OpenAI, Anthropic, Google, and Meta are all competing aggressively in AI. Regulatory scrutiny could increase as SpaceX expands across communications, AI, and aerospace markets.

That said, the company possesses advantages few rivals can match. It controls launch capacity, satellite infrastructure, global connectivity, AI development, and increasingly valuable data networks under one corporate umbrella.

Key Takeaway

In short, Oppenheimer's 40% upside target isn't based on a single breakthrough product. It reflects the possibility that investors are still valuing SpaceX as pieces rather than as an integrated platform company.

The launch business alone is impressive. Starlink is already a global communications powerhouse. The wildcard is AI. If SpaceX signs larger compute contracts, expands Grok adoption, and successfully monetizes its growing infrastructure footprint, today's valuation may prove less aggressive than it appears.

Ultimately, the biggest risk for investors may not be that SpaceX grows too slowly. It may be that Wall Street is still underestimating how many businesses SpaceX is becoming at once.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

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