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Francesca Rudkin: What's next for SpaceX and investors? · Best of Business

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  Speaker 1: You're listening to a podcast from news Talk said be
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  Speaker 2: So last week in Ashburton, family won twenty eight point
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  Speaker 2: six million in the powerball drawer. Just imagine how overwhelming
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  Speaker 2: that must be. We all dream about it, but the
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  Speaker 2: reality of managing such a windfall on all that comes
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  Speaker 2: with it is much more complicated than the fantasy men.
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  Speaker 2: This week, the world got its first trillionaire and suddenly
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  Speaker 2: getting your head around a huge windfall got even more surreal,
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  Speaker 2: and the wealth gap got so much more confronting. With
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  Speaker 2: the SpaceX float, the public got to invest in Elon
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  Speaker 2: Musk's dream of humans on Mars and data banks in space,
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  Speaker 2: the biggest float in history. The shares opened at you
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  Speaker 2: as one hundred and fifty dollars, rocketed up to one
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  Speaker 2: hundred and sixty eight within the hour, and this price
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  Speaker 2: gave the company a market value of two point twenty
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  Speaker 2: one trillion, and Musk himself is now worth around one
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  Speaker 2: point one trillion. According to Forbes, a trillion is one
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  Speaker 2: thousand billion. I mean, they're just inconceivable. It's an inconceivable amount,
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  Speaker 2: isn't it? For all of us? What's really interesting about
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  Speaker 2: this IPO is that, on paper and using traditional valuation methods,
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  Speaker 2: many experts felt the company was overvalued, but these reservations
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  Speaker 2: didn't stop investors from flocking to be part of the dream.
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  Speaker 2: SpaceX lost about four point nine billion, and twenty twenty
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  Speaker 2: five it's trading around ninety ninety five times its annual revenue.
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  Speaker 2: Many analysts argue its valuation is out of whack with
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  Speaker 2: what business fundamental support, with some estimates putting fair value
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  Speaker 2: at roughly half the IPO valuation. So what does this
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  Speaker 2: IPO tell us about investors about ourselves? It tells us
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  Speaker 2: that in this time of uncertainty, economic pressures, and geopolitical chaos,
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  Speaker 2: we still love a good story, and man does Elon
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  Speaker 2: Musk know how to sell a story. Investors are valuing
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  Speaker 2: SpaceX not as a company, but as a platform for
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  Speaker 2: multiple future future industries. It's not about its present profitability,
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  Speaker 2: there is none. It's about what it could become. Much
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  Speaker 2: like Amazon and Tesla when we're first floated but supersized,
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  Speaker 2: this is a story about spaceships, orbital infrastructure, AI computing,
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  Speaker 2: and creating a one million person Martian company. According to SpaceX,
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  Speaker 2: it's about saving humanity by establishing other outposts in space
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  Speaker 2: as well as massive AI data centers. And to do
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  Speaker 2: all this, SpaceX needs money, lots and lots of money.
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  Speaker 2: So I quite like that people are buying into this
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  Speaker 2: so far future possibly fantasy, the mass shot. It's ambitious,
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  Speaker 2: it's adventurous, and SpaceX vision is much more fascinating than
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  Speaker 2: almost all other companies, and it is clear to see
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  Speaker 2: why investors flocked by If you had the chance, why
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  Speaker 2: wouldn't you buy into what could become the defining company
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  Speaker 2: of the twenty first century. And that's the next interesting
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  Speaker 2: aspect of this IPO. As much as investors have shown
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  Speaker 2: their faith in enon mask, how well will the share
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  Speaker 2: price hold up? If your kentwin v through the S
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  Speaker 2: and P five hundred, you're going to have to wait
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  Speaker 2: twelve months. Who knows what the share price will be.
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  Speaker 2: I suppose that's the fun in being an investor.
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