Reply to It’s Possible That SpaceX Could Collapse Spectacularly

Forum Index » Money and Finances

Reply to "It’s Possible That SpaceX Could Collapse Spectacularly"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]
[b]It’s Possible That SpaceX Could Collapse Spectacularly[/b]

[i]Elon Musk's SpaceX IPO is a mere week away, with the space company aiming to raise a whopping $75 billion at an astronomical valuation of $1.78 trillion.

The company's top priority has historically been to get humanity settled on Mars, making it an interplanetary species. But now Musk has unexpectedly merged it with his AI startup xAI to focus on space-based data centers, an extremely costly and potentially fruitless distraction. The majority of the post-merger company's expenses are now tied up in burning cash for xAI — leaving SpaceX, which had already been burning through billions of dollars each year itself, in an even more precarious position.

With those more-than-lofty ambitions come some tough questions. Perhaps most glaringly, the Financial Times' Richard Waters asks in a new piece, is whether SpaceX will be able to justify its unprecedented valuation five or ten years from now.

Even for Musk, it's an aggressive price-to-earnings ratio that could blow up in his face if investors start to lose faith. The conversation surrounding plans for shorting SpaceX is hitting a fever pitch, setting the stage for what could be a wild stock market ride.

Adding to the drama is that now that SpaceX has transformed into an AI company, analysts are becoming antsy that the massive IPO, alongside OpenAI and Anthropic's, could place even more strain on an already bloated Wall Street. Could its stock market debut be the straw that broke the camel's back, bursting the bubble by dissipating all of that pent-up excitement?

If Musk's EV maker Tesla is anything to go by, SpaceX's business fundamentals likely won't be a major factor. Tesla's sky-high valuation has long been propped up by promises of a humanoid robot and autonomous driving-filled future, while the company's actual revenue has lagged far behind. [/i]

[...]

https://finance.yahoo.com/markets/stocks/articles/possible-spacex-could-collapse-spectacularly-155000177.html[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics