Google turned $900 million into $94 billion.
That’s the SpaceX stake Alphabet disclosed last week, 551 million shares, about 4.2% of the company, off a check they wrote in 2015. More than a hundredfold in ten years.
Nvidia showed up with $21 billion, its second largest disclosed equity position after Intel. That one came in sideways, out of a $10 billion investment in xAI that turned into SpaceX shares when Musk folded xAI into the rocket company.
AMD is on the cap table too. So is Norway’s sovereign wealth fund, the Saudi PIF, Fidelity, and the University of California.
And Harvard.
Harvard Management’s single largest stock holding is SpaceX, at $2.2 billion, which works out to 52% of their entire disclosed US equity portfolio. TSMC is second at about a sixth the size.
Who would have thought Google is buying SpaceX? Isn’t that kind of like one of your competitors? You make Gemini, they make Grok.
I don’t have a problem with it. It just gets a little incestuous.
Everybody was talking about that lockup period. It ended one or two days after earnings for a huge number of employees and internal shares, and people lined up to tell you the stock was about to get buried.
The shares have done nothing but go up. It’s up 30% in August and back above its $135 IPO price.
Never listen to that BS.
There are going to be sellers. It does not matter how many shares they want to sell, because there are people out there buying them.
While everybody was theorizing about who was selling, I sat here this morning and watched the buying happen.
Almost 100,000 contracts traded in SpaceX before I finished my coffee, and look at the number of calls trading at the ask or above. That’s a gamma squeeze. There is wild demand to buy calls in here, and what that does is perpetuate an up move in the shares.
While you’re at it, drop the insider selling theory entirely.
That premise works, but only in illiquid names. You have to be trading something like Joe’s Tree Cutting Service, and if Joe is buying Joe’s Tree Cutting Service, pretty good chance Joe knows something, because it’s Joe.
In something this liquid, you don’t give two craps who sold.
And if you need any help piecing all this together…grab his free 60-Second Pre-Trade Options Checklist — 5 checks that tell you what’s actually worth trading before you ever touch it.
To your success,
Don Kaufman
