Is SpaceX overvalued given its current low revenue and valuation?

[Kelly6]

how is possiable?

[Telekinetic-Potato]

The value of SpaceX is in its government relationships and positioning.

It's akin to being one of the members who started the federal reserve.

Space flight will be regulated heavily. Random people will not be allowed to build skyscraper sized rockets, fill them with liquid fuel and launch them over people, infustructure or anything else. Let alone take up space around earth's orbit, or have access to government property which will not be properly protectable for a long time.

Think about how exclusive having the right to do even have a chance to demonstrate the capability to compete is about to be. You have to be trusted not to launch some graffiti artist from an inner city to the moon where NASA is researching whatever the hell they're doing there.

The government is actively fighting for more control over anything below 500 feet above the ground your house sits on.

If you want quick money, day trade it. Put some money in, expect the first crash to be within 3-30 days, gamble on the dip and watch people talk about it on cnbc and tiktok to gage everyone else's temperature.

But unless another Elon musk shows up or he suddenly looses everything to some kind of political move by an enemy (which I'm guessing he took the company public partly to protect it from that) that company is one of the most valuable assets to the American government. It's equally or more important than Google Microsoft and TSMC

[OneViewpoint]

Every IPO runs on hype and FOMO. Don't forget, the IPO is off limits for Joe and Jane average. The banks, hedge funds, and other institutional investors like foreign sovereign wealth funds have exclusive access. Those 1% players will play the usual pump and dump with the share price to cash in during the honeymoon phase before the unwashed masses catch on. Joe and Jane will spend a few years (or forever) underwater on their shiny new shares of Space X. Isn't Capitalism wonderful. One might say Joe and Jane should educate themselves.

[juliammm]

Elon creates the need for launchers with his Starlink constellation.

He auto-generates the business with questionable needs.

[Anonymous]

Possibly, but even without it Elon Musk is really rich

[Lesbologist]

I'm pretty sure there is some non-acknowleged military contracts that are not in the math. Remember the Biden Admin wanted to come down on him hard because he didn't want his... damn can't remember the service rn, the one van lifers use to play online video games in the woods with... anyways...

He didn't want it being used in war with Ukraine, but then he complied and the Biden Admin laid off of him.

Anyways, I'm just saying I bet he got paid for that and gets paid for shit we don't know about as well.

[MrChinaski]

Yes. Is the simple answer.

Starlink is a good business.

The launch business doesn't make much.

Nobody serious uses X and never will again. It's a cesspool.

Grok is dead in the water. Space X engineers refuse to use it. SpaceX's second-largest revenue line is renting compute to Anthropic because there is nothing useful for Grok to do with it.

Unencumbered by all the garbage, Starlink is worth maybe $250 billion. SpaceX as a whole is ~10 x overvalued.

But what are you going to do? Musk businesses are meme stocks. They are like bitcoin: if they are worth practically nothing, who is to say they shouldn't be worth twice as much tomorrow?

[Anonymous]

Yes its how the stock market works. Overvalue stock and sell it off, then it crashes and you buy it back for pennies on the dollar. Musk did it with tesla, he devalued the stock going on the rogan show high then he bought up stock for next to nothing

[AviatorTom]

SpaceX is the only company that consistently launches rockets into space, while reducing the cost through reusability. Over the long run, they will be profitable. Remember that Starlink, a billion dollar company with regular income from its global network, pays SpaceX for launches.

[Bricealan]

@Kelly6 Not being a financial advisor, or a Tech whiz, mine is only a SWAG, 'Scientific Wild Assed Guess. UNDERVALUED by far. I drive one of his wonder machines - a model S Plaid. He will put us on Mars in the near/distant? future and SpaceX will be King of the Hill

[OlderAndWiser]

A responsible investor would be looking at long term potential and placing much value on the identity of its director.

[lightbulb27]

Of course, the purpose is to make those early investors... rich.

but not convinced there is much sanity going on right now.

[exitseven]

Investors ate betting on the future. Space exploration, AI and satellite internet are all industries that re supposed to be very profitable in the future.

[MisterWack]

Overvalued.
The majority of the stock market is over inflated garbage being held up by AI, estimates, and lies.

[DryGermanGuy]

All musky business is running on promises, fantasies and lots of hot air. 🙄

[MrOracle]

You think fantasies and hot air are performing almost 200 launches a year at prices less than half of what it cost per launch 10 years ago?

You clearly don't know much about the space launch business, of which SpaceX owns 85% of GLOBAL launch capacity.

[DryGermanGuy]

The operation is losing money with every launch. So to me this looks like a destructive company, trying to price out the competition to cash in royally afterwards.

[MrOracle]

Lol. No, it isn't.

Ever heard of a company called Amazon? This little company was heavily criticized for not being profitable for over a decade, despite massive revenue. Why was that? It's because Amazon was spending massive amounts of money building out infrastructure - buying warehouses, trucks, sorting facilities, etc. People kept saying it was just another "dot. com" that was going to go bankrupt. Did they?

SpaceX is spending money on both infrastructure and development of new designs and technologies. That's what enabled them to capture 85% of the launch market in only a decade and why they are growing the launch market every year. Like Amazon, SpaceX is investing in its future, and making remarkable progress that will have significant profit potential attached to it. If SpaceX stopped spending on R&D for a year, it would show big profits immediately, but Elon isn't that short-sighted - he's looking a decade ahead instead of a quarter ahead, and that's why his companies are successful.

[AngryCarl3]

I mean technically the whole stock market is overvalued. I wouldn't say Space X is a Ponzi scheme but it's hard to see the return on capital.

[Kelly6]

agree

[Kelly6]

@AngryCarl3
agree but at least other companies such as google or apple generate lot of profit

[MrChinaski]

@Kelly6 Yes.

Alphabet, Meta, Amazon make a ton of money.

SpaceX loses money. Tesla is a $1.5 trillion company making $3 billion in profits. If I asked to borrow $1500 from you but assured you I'd pay you back $3 a year how excited would you be?

[Kelly6]

@MrChinaski will be very angry on $3/ year lol

[molonski2]

Absolutely YES..

But , the price will move higher pushed by the index.

[jshm2]

Obviously..

Its assets are only worth around 70 billion.

[Jersey2]

If ypu want to buy, try late December when things cool off. That is what I will do. I probably own some already through index funds though.

[ThisSiteSux]

It doesn't matter. The stock market has been removed from financials for 16 years. Anyone with any brains wants out of cash.

[Hanrej]

Market price isn't always tied to a companys profits but the interest in the company. High demand on its stocks drive up the price.

[LC75LC71]

I can't give you stock tips. But.. Blue horseshoe loves Anacott Steel.

[NotSomeUserName]

It is probably worth a lot of money because of the rockets.

[_Jenny_]

@Kelly6 How can we know for sure?

[Kelly6]

asking those who know it.

[_Jenny_]

@Kelly6 gotcha

[Kelly6]

same.
as we are only expert in dance

[_Jenny_]

@Kelly6 yes 💃

[msc545]

Yes, of course it is.

[RedInnocent69]

Yup. It will come down

[Shrimpenjoyer]

Yeah I think Elon sucks in general

[robocop666]

how does it make money?

[Kelly6]

starlink internet

[robocop666]

so thats how they make a fortune? I dont get it

[ohsheeT]

Be patient

[RCONFIGURATION1]

It just might be

[leviopperman]

yes.

[kinks1951]

Way over