SpaceX is the 'ultimate growth stock' with potentially unlimited growth potential. The best comp is Tesla: both have a profitable core business (Starlink/Auto) and a moonshot (AI/Robotics) built on the same foundational tech. The core business (Starlink) can be valued on earnings, and the stock gets interesting when the 'everything else' (AI, data centers) is not heavily discounted by the market.
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John Belton
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SpaceX is the ultimate growth stock with potentially unlimited growth potential. It will be a long-term story and will take time to find its groove in public markets.
What does the runway for meaningful returns look like? Is it a Facebook story (years) or something different?
Romaine Bostick
John Belton
Tesla is the best comp. Both have an established, profitable core business (Auto/Starlink) and a moonshot (Robotics/AI) built on the same foundational technologies. The core business is worth X, and the stock gets interesting when the other parts are not heavily discounted.
Can the market support an 'Elon Musk premium' for two different giant companies (Tesla and SpaceX)?
Katie Greifeld
John Belton
Tesla trades on long-term earnings power. When fundamentals are clicking, the auto business represents a lot of value. For SpaceX, Starlink has a high valuation as a standalone business (growing top line 50%, 40%+ EBIT margin).
How do you assign valuation to the different components of SpaceX (satellites vs. orbital data centers vs. Mars)?
Katie Greifeld
John Belton
Both companies are built on a small number of foundational technologies. For SpaceX, it's rapid, reusable propulsion. The first application was LEO satellite networks. You value the core business (Starlink) and the stock gets interesting when the future opportunities are not heavily discounted.
