Historically a $1T market cap with a PE of 20.0 would be achievable with a $50B/yr profit. That seems easily achievable eventually for SpaceX, as it has actual hardware and services and IP.
It seems crazy to me to make a comparison between a company being valued on it's current profit and then to say it's reasonable for another company to have the same market cap because it could eventually have the same profit.
> Yeah, but is SpaceX actually worth $1T
The question and context of your response was about SpaceX's present value. Given the context, I think my response was absolutely a fair reading of your response.
> Reading comprehension, people.
Indeed.
That said, I don't agree on the valuation, but I can see where some people could be coming from.
The valuation is insane and the very low float plus short timeframe for actual price discovery just seems built to extract money from index investors.
They can follow the same rules as everyone else.
The wildcard there is AI, and that seems especially dangerous to project long-term revenue from their current performance: xAI is barely in the market except renting capacity to Anthropic, so you’re gambling that they’ll continue to pay $1¼B/month for what is largely a commodity offering. Even if you’re bullish on Anthropic, that doesn’t mean xAI gets part of their profits, and given the way they blindsided the local authorities there’s a substantially greater than zero chance that they’ll get a major setback if the neighbors win their lawsuits. That doesn’t mean they’re doomed, but anyone estimating their future performance has to factor in some real risks.
> I would hazard a guess they are not getting the uptake in institutional money they were hoping for.