Alphabet's Biggest Hidden Money Machine Is About to Launch to the Moon in 2026

When investors think of Alphabet, they immediately picture Google’s search dominance. But beneath the surface lies a portfolio of assets that could send shareholder returns soaring—and the biggest catalyst is just around the corner.

The Often-Overlooked Investment That Could Be a Game Changer

While most people focus on Alphabet’s cloud business and robotaxi venture Waymo, the company is sitting on a much larger under-the-radar opportunity: its approximately 7% stake in SpaceX. This isn’t some distant, speculative bet. In 2026, when SpaceX is widely expected to pursue an IPO, Alphabet could see a massive windfall from its $900 million investment made back in 2015.

To put this in perspective: Alphabet invested at a $12 billion valuation. SpaceX recently hit $800 billion in a secondary transaction, and Elon Musk has indicated he’s targeting a $1.5 trillion IPO valuation. At that price, Alphabet’s stake alone could be worth over $100 billion. That’s not pocket change—it’s a potential game-changing event that most mainstream investors are completely overlooking.

Why SpaceX Is Ready for Primetime

SpaceX isn’t just a rocket company anymore. It’s evolved into a diversified revenue engine with multiple streams:

Starlink’s Explosive Growth: The satellite internet service has amassed over 8 million customers across 150 markets. This business is rapidly becoming mainstream, with roughly two dozen airlines already using the service for connectivity. The global demand for high-speed internet, especially in underserved regions, means Starlink’s runway is just getting started.

Government and Commercial Launch Services: SpaceX has become the go-to launch provider for both U.S. government contracts and private commercial customers, creating a steady cash flow that funds continued expansion. The company has launched over 100 rockets this year alone, demonstrating operational excellence at scale.

The Orbital Data Center Wild Card: Looking further ahead, SpaceX is pursuing ambitious plans for orbital data centers powered by solar energy with naturally free cooling. This sounds speculative, but major tech companies—including Alphabet itself—are actively investing in the concept. Alphabet is testing this through Project Suncatcher, a partnership with satellite company Planet Labs, where Alphabet holds a 10% stake. Two prototype satellites will launch in 2027 to validate the technology.

Alphabet’s Broader Space Portfolio

SpaceX isn’t Alphabet’s only space bet. The company also owns a 10% stake in Planet Labs for its orbital data center research and has invested in AST SpaceMobile, which is developing technology to connect satellite networks directly to smartphones. It’s a portfolio approach to capturing multiple angles of the space economy boom.

The Core Business Remains Incredibly Strong

Beyond these hidden assets, Alphabet’s fundamental business is firing on all cylinders. Google maintains a commanding ~90% search market share, monetized through a global advertising network that serves everyone from Fortune 500 companies to local businesses. YouTube remains the world’s largest video platform. Google Cloud is accelerating, powered by enterprise AI adoption, with custom-built Tensor Processing Units (TPUs) giving Alphabet a significant cost advantage over competitors.

Alphabet’s Gemini AI model stands among the world’s most capable, and the company has strategically woven it throughout its product ecosystem. Meanwhile, Waymo’s autonomous taxi business continues expanding rapidly, having surpassed 450,000 weekly paid rides and planning international expansion to Tokyo and London.

The company’s quantum computing division is making breakthroughs with its Willow chip, which demonstrates real-time error correction—a critical milestone for the field.

Valuation Looks Reasonable for What You’re Getting

Considering all of this, Alphabet trades at a forward price-to-earnings ratio of 27 times 2026 analyst estimates. For a company generating massive cash flows from its core search and advertising business, while simultaneously holding a multi-billion-dollar stake in SpaceX that’s about to potentially IPO, that valuation looks compelling.

The 2026 timeline is crucial. That’s when the SpaceX IPO is likely to occur, potentially unlocking enormous value for patient shareholders. Until then, investors get the stable, profitable core business—search, YouTube, cloud, and emerging bets like Waymo—essentially for free, while holding a significant position in what could be one of the most valuable private companies becoming public.

For investors willing to look beyond the headlines, Alphabet represents a unique opportunity: a dominant tech business with a hidden catalyst about to go to the moon.