r/investing
Is SpaceX becoming this generation's Amazon investment story?
Investors compare SpaceX's high valuation to early Amazon, but the author questions if this parallel is fair or just a stretch.
- SpaceX has the potential to reshape multiple industries and create entirely new markets.
- Similar to early Amazon, current high valuations could be justified by future market dominance rather than traditional metrics.
- For every Amazon, there are hundreds of companies that fail to grow into their high valuations.
- Investors may be forcing historical parallels to justify a price that is fundamentally difficult to defend.
One comment from institutional investors caught my attention today.
Several people compared SpaceX to Amazon during its early years. The idea isn't that today's business justifies the valuation. The idea is that investors believe the company could eventually reshape multiple industries and create markets that barely exist today.
That comparison is fascinating because Amazon also spent years looking expensive, controversial, and difficult to value using traditional metrics.
The obvious problem is that for every Amazon there are hundreds of companies that never grow into their valuation.
Do you think the Amazon comparison is fair, or are investors stretching for historical parallels to justify a price that is difficult to defend?
Why would cars and cellphones come with Starlink?! How is spotty, outdoor only, clear sky view sat-to-handset coverage in remote and ultra rural areas a cash cow?
Well integrated with standard cell coverage obviously
Because you are an absolute moron if you think the “spotty, output only, clear sky” will stay true forever. It’s already better than you think it is.
Has the same energy as:
“Why would anyone want to carry a phone the size of a brick in their pockets, the only phone you need is the one plugged into your wall at home!”
He also has no way to do that. People don't understand how far we are from colonies the moon let alone Mars. Mars is currently a one way death trip even for trained astronauts. Commercial space flight for average people is decades away. Musk will be long gone before there is a person on Mars.
This is all vanity project for a deeply insecure person. He just wants to be the first trillionaire. He knows he can rely on his fan boys to hold the bags if he tells a cool story.
And that's the real investment potential; there probably are enough morons to buy this story to make the price pop. Same as Tesla.
If he had started a company to explore the ocean bed and see what resources are down there, I’d have bought.
You wanna know the biggest change between Amazon and Space X? Amazon grew during 2 decades of falling interest rates.
Statlink in every device and every transportation platform and every military asset ?
I don’t think you understand what Starlink is and what it isn’t.
Spacex is a conglomerate of bullshit, you are buying a basket of musk not starlink
Elons greatest soldier
Yes. The money they are putting into R&D has been paying off and would be the foundation of a space economy. Those arguing from the spreadsheet don't see the potential in that very spreadsheet their arguing from. Give it a decade from today, you'll see I'm right.
Alternatively could be this generations Enron.
So we're calling TSLA and SpaceX penny stocks?
Acts like it and has similar valuation problems
Well I tell you what I wish I bought TSLA when it was closer to a penny then...
That’s exactly my point, thank you 👍