This Holding Gets a $100 Billion SpaceX Update Ahead of IPO

Elon Musk, SpaceX

While we the market flirts yet again with record highs and we wait for Netflix (NFLX) to report after Thursday's market close, let’s catch up on some noteworthy developments for some of the Portfolio’s holdings, including Costco (COST) and Google (GOOGL) as well as some items we’re watching for Morgan Stanley (MS) and Bank of America (BAC) .

Google’s SpaceX Stake Is Worth Up to What?

Much attention has been placed on the pending IPO for SpaceX, and understandably so, given the volume of investment banking fees that it is expected to generate. It’s also being closely watched as a barometer for other large, high-profile IPOs slated to arrive in the coming quarters. But there is another reason for us to follow the offering and its eventual lock-up expiration.

It has to do with investments made in SpaceX by other companies, which include Google and Bank of America. Per reports, Google owned a roughly 6% stake in SpaceX at the end of 2025, but odds are that figure has been diluted somewhat following SpaceX’s merger with xAI. Bank of America has also been flagged as an investor. This means we have some indirect exposure to SpaceX, but more importantly, those holdings have a monetizable asset on the horizon.

Ahead of SpaceX’s analyst day next week, some are floating a potential $2 trillion valuation figure, which sounds a bit heady if you ask us. If Google’s SpaceX stake is around 5%, that explains the roughly $100 billion value being bandied about on Thursday. When and how Google will decide to monetize that position is something we’ll need to track, but as we think about its capital spending plans for this year and most likely the next few, that would be one way to help fund it.

We’ll look for more on BofA’s stake when more documents are filed with the SEC, including confirmation that it and Morgan Stanley are among the selected lead underwriters.

The Madison Air and Arxis IPOs

And while we’re talking about IPOs, air quality solutions company Madison Air (MAIR) priced its IPO offering at $27 per share, the high end of the targeted $25 to $27 range, raising $2.2 billion. Aerospace and defense company Arxis (ARXS) also priced its IPO at the high end of the $25 to $28 range, and that transaction is a feather in the cap for Morgan Stanley.

Over the next two weeks, another seven IPOs are expected to be priced, with Morgan named as a lead underwriter on three of them, and Bank of America on two others.

We’ll follow that upcoming activity, and as we indicated on Wednesday, we’ll circle back to our MS and BAC price targets in the days ahead.

Costco’s Dividend Increase

On Wednesday night, Costco announced upped its quarterly dividend by just over 13% to $1.47 per share. This new annual dividend of $5.88 per share marks the 22^nd consecutive dividend increases from this membership driven warehouse company.

With management’s footprint expansion plans, which should continue to expand the very profitable membership base, we strongly suspect COST shares will join the Dividend Aristocrats when they pass the 25 consecutive year mark for dividend increases. When that happens, it will trigger COST shares being added to the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) , which currently boasts assets near $11.2 billion.

Costco will pay this new quarterly dividend on May 15 to shareholders of record on May 1.

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At the time of publication, the Pro Portfolio was long BAC, COST, GOOGL MS and NFLX shares.