Diamandis cited SpaceX\u2019s launch monopoly, the Starlink business, and its frontier AI efforts as reasons for his bullish outlook on the company.<\/p>\n
He said that while everyone is fixated on SpaceX\u2019s rocket launches, Starlink is the profit engine.<\/p>\n
Diamandis said that he believes the odds of Tesla folding into SpaceX are at 100%, adding that the synergies between the two companies make a potential merger logical.<\/p>\n
Early SpaceX investor and X Prize Foundation\u2019s Executive Chairman Peter Diamandis on Monday dismissed valuation concerns around Space Exploration Technologies Corp. (SPCX) following its blockbuster IPO last week.<\/p>\n
During an interview with CNBC, Diamandis said that SpaceX is being priced as a normal space company when it is actually a combination of three converging businesses.<\/p>\n
See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox<\/a><\/p>\n Diamandis touted SpaceX\u2019s launch monopoly, the Starlink business, and its frontier AI efforts for his bullish outlook on the company. He said that he first invested in SpaceX in 2013.<\/p>\n \u201cYou\u2019re not buying just the revenue, though I expect that to scale significantly. You\u2019re buying humanity\u2019s future economy, and I think that\u2019s one of the key points folks aren\u2019t really understanding,\u201d he said.<\/p>\n His comments come amid concerns from Morningstar analysts, who noted in a note last week that the SpaceX IPO is overvalued. Short-seller Jim Chanos also echoed similar sentiments, saying that<\/a> SpaceX\u2019s valuation aim was built on \u201chopes and dreams.\u201d<\/p>\n SpaceX shares were up more than 13% in Monday’s midday trade.<\/p>\n Diamandis Looks Beyond Rocket Fixation, Touts Starlink Profitability <\/p>\n Diamandis said that while everyone is fixated on SpaceX\u2019s rocket launches, Starlink is the profit engine. According to SpaceX\u2019s regulatory filings, the Starlink business\u2019s operating income in the first quarter (Q1) came in at $1.19 billion.<\/p>\n Diamandis said that Starlink is becoming the new communications layer and infrastructure for the entire planet.<\/p>\n \u201cI think of the launch business as the moat that SpaceX has, Starlink is the cash flow engine, and the AI satellites that Elon has announced… he\u2019s shown us 11 million square feet of production, and he just showed us the AI satellites, all of these are under one ticker, and it’s three exponential curves that are all accelerating,\u201d he said.<\/p>\n Diamandis also added that SpaceX is now becoming a hyperscaler, citing compute contracts signed with Alphabet Inc.\u2019s (GOOG, GOOGL) Google and Anthropic.<\/p>\n Diamandis Explains Why TSLA, SPCX Merger Would Be Logical <\/p>\n Diamandis said that he believes the odds of Tesla Inc. (TSLA) folding into SpaceX are at 100%, adding that the synergies between the two companies make a potential merger logical.<\/p>\n He said that Musk never wanted to be Tesla CEO, but he built it because he thought it was important. Diamandis added that Musk\u2019s focus was always on SpaceX.<\/p>\n \u201cBringing them together really consolidates them and enables him to really guide the combined company,\u201d he added.<\/p>\n Diamandis also cited Tesla\u2019s Gigafactory and SpaceX\u2019s Terafab projects, saying that they borrow resources and deliver products to each other.<\/p>\n During an interview earlier on Monday, Wedbush\u2019s Global Head of Tech Research, Dan Ives, echoed similar sentiments<\/a> regarding the SpaceX and Tesla merger.<\/p>\n \u201cI would be shocked if it doesn\u2019t happen just given the synergies, given the cross pollination, and also for Musk himself, I think it makes the most sense to have all that AI technology under one hood, especially given the controlling nature of SpaceX,\u201d he said.<\/p>\n What Retail Traders Think About SPCX Stock <\/p>\n Retail sentiment on Stocktwits around SpaceX trended in the \u2018extremely bullish\u2019 territory, with message volumes at \u2018extremely high\u2019 levels at the time of writing.<\/p>\n SPCX stock is up 17% year-to-date, while TSLA stock is down 9%. The S&P 500 ETF (SPY) is up 27% over the past 12 months, while the Invesco QQQ Trust (QQQ) is up 41%.<\/p>\n The iShares A.I. Innovation and Tech Active ETF (BAI) is up 93% during this period.<\/p>\n Also See: AMD Tops $900B Market Cap For First Time As Ryzen AI Halo Challenges Nvidia DGX Spark<\/a><\/p>\n For updates and corrections, email newsroom[at]stocktwits[dot]com.<\/p>\n Rounak Jain has no position in any of the stocks mentioned in this article. StockTwits’ news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy<\/a>. This article was originally published on StockTwits<\/a>.<\/p>\n Related:<\/p>\n","protected":false},"excerpt":{"rendered":"Diamandis cited SpaceX\u2019s launch monopoly, the Starlink business, and its frontier AI efforts as reasons for his bullish…\n","protected":false},"author":2,"featured_media":501258,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[214478,214477,61,60,124813,9784,82,247,2306],"class_list":["post-501257","post","type-post","status-publish","format-standard","has-post-thumbnail","category-space","tag-bullish-outlook","tag-diamandis","tag-ie","tag-ireland","tag-peter-diamandis","tag-rocket-launches","tag-science","tag-space","tag-spacex"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/501257","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=501257"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/501257\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/501258"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=501257"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=501257"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=501257"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}