4 ms·

The IPO price for SpaceX was _delusional_. The price now is delusional. Especially since it's so dependent on the US government for revenue and he's done ever

• tombert 4mo ago
  It was insane to me that a company that had less than thirty-billion in revenue was valued at more than a trillion. I'm not sure how the People in Charge didn't call bullshit.
  • ifwinterco 4mo ago
    The way exponential maths works, if a company really can grow at (for example) 10% per annum then it can grow into what looks initially like a very high PE multiple on current earnings surprisingly quickly. This is why people sometimes use forward P/E but that does have the obvious drawback of the denominator not actually existing yet. However with SpaceX the valuation is extreme and also can they grow at that rate for years on end? Potentially not
    • tombert 4mo ago
      Reading their IPO prospectus seemed to imply that they planned on getting 100% of the entire AI market. Considering how far behind Grok is (revenue-wise, but also quality-wise [1]), that seems very unlikely to me, and while this might be overly optimistic I think there's a chance that with SpaceX being public, Elon's drug addiction and pathological lying might catch up with him. [1] Disclaimer, I've only used the free version of Grok. Maybe the paid one is great but I doubt it's better than Claude or OpenAI and I don't want to give Elon money since he seems to have done a pretty good job buying the executive branch with it.
  • cyberge99 4mo ago
    There are no people in charge.