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> SpaceX is trading at a whopping 94x revenue. This deal increases SpaceX's revenue by $11 billion per year. If SpaceX maintains this revenue multiplier, then t
by lelanthran 5mo ago
> SpaceX is trading at a whopping 94x revenue. This deal increases SpaceX's revenue by $11 billion per year. If SpaceX maintains this revenue multiplier, then the single deal boosts SpaceX's valuation by 94 x 11 billion = $1 trillion dollars.
That final number doesn't make sense: if you're trading shares at $X revenue, increasing the revenue by $Y multiplier doesn't increase the share price by the same multiplier.
- IshKebab 5mo agoYou're right. Share price isn't based purely on a multiplier of current revenue.
- zulux 5mo agoBut they did need to shore up that p/e ratio. Got to assuage our inner Ben Graham.
- tristanj 5mo agoSure it might not stay at 94x. But as long as SpaceX trades above 20x revenue, Google makes money from this deal. And the bigger play is this deal pushes SpaceX over the finish line for S&P 500 inclusion. That's worth tens of billions for everyone involved.
- chrisandchris 5mo agoI rreally dislike how big corp figured out that the can sell stuff to each other without actually moving some good. Looking at you, Nvidia... I have a feeling that the ordinary people will again pay for that.
- fooqux 5mo agoThis sounds exactly like the kind of thing that will be outlawed in thirty years after tracing back the root cause of the second great depression.
- dgellow 5mo agoThat would require regulators to actually pay attention, something they haven’t done actively since a long, long time
- dawnerd 5mo agoFirst step would be to prevent the regulators from profiting to begin with.
- WarOnPrivacy 5mo agoIn my experience, if we don't (meaningfully) root out corruption and ineptitude, we will continue to be governed+leveraged by one/both.
- boppo1 5mo agoCan't root it out, it's part of the system. Sortition is the best we can hope for now.
- deleted 5mo ago[deleted]
- dyauspitr 5mo agoOutlaw what? Prevent companies from selling goods and services to each other?
- snypher 5mo agoI think SpaceX should be valued on rockets n space n stuff, not how many magical calculator dollars they bring in. Surely Google can "make compute go" for $1b/month. Nice way to avoid holding the bag, maybe?
- trollbridge 5mo agoThe market seems to value both rockets and magical calculators.