Alphabet Backs $80B Equity Sale as SpaceX Prepares $1.8T IPO
GOOG•Dan Ives calls Alphabet’s planned $80 billion equity sale a strategically smart funding move tied to its AI and cloud growth initiatives. In parallel, SpaceX is eyeing a historic $1.8 trillion IPO with a 100x P/S ratio and a $6.4 billion AI division loss.
1. Analyst Endorses Alphabet’s $80B Equity Sale
Dan Ives from Wedbush Securities labels Alphabet’s planned $80 billion share issuance a strategically smart move to fund its AI and cloud growth initiatives. He highlights that this equity sale strengthens the balance sheet ahead of Alphabet’s next monetization phase without causing excessive dilution.
2. SpaceX Targets Historic $1.8T IPO Valuation
SpaceX is preparing what would be the largest IPO in history at an estimated $1.8 trillion valuation, driven by Starlink’s $11.4 billion revenue and $4.4 billion operating income last year. Despite that strength, its AI division posted a $6.4 billion loss and the proposed 100x price‐to‐sales multiple raises valuation concerns among investors.
