Genuinely curious about the math behind this. https://www.msci.com/indexes/index/754891 this index represents a decent chunk of the worldwide telecommunication industry. It's only worth $1.45T in total. They roll trucks and dig trenches to provide internet service - and provide other telecom services besides. My gut tells me that's cheaper than launching rockets. And these companies already provide service to most of the humans that have money.

I think SpaceX has done brilliantly in lowering the cost of rocket launches. I still don't understand or believe in the valuation.

Only if the world doesn't regard the owner of said telecoms service as a political security risk. Tricky sell given increasing distrust of globalisation and the new trend of sovreign-shoring.

Really because the entire world's economy is only about 120Tn. One internet provider is about 5% of that?

Me selling lemonade at the end of my driveway is about 300-800 million dollar business. That's just one thing I sell at the end of my driveway.

250k people in my city x $4/lemonade x 365 days per year

Source of that valuation? As doubt its true

People in less wealthy countries will pay a cheaper sum than wealthier countries.

Also China is accelerating its own equivalent

BS check: $8T is $1000 per person on this planet. A healthy P/E ratio of 25 would translate to earning $40/year in profit from every person on the planet. SpaceX/Starlink obviously doesn’t just walk in and get everyone as a customer though. They have roughly 10 million customers right now. Let’s be generous and say they have 20 million. That $8T works out at $400K per customer valuation which at a 50 P/E would mean $8K/year/customer profit per customer or $666/month/customer profit. Those are generous numbers. Scaling back to 10 million customers and 25 P/E would require $2666/month/customer in profit to get to $8T valuation. For Internet service?

Bullshit