Short answer: Sam Nadler says SpaceX's valuation peaked above Amazon's days after its IPO and it feels a little frothy. Jackson Reiter says markets are in an opportunity cost era, where people place bets on what SpaceX could do.
Watch this answer from Episode 47 (starts at 16:18) · Episode 47 notes and transcript
From Episode 47: AI Agents Doing Commercial Real Estate Due Diligence in Minutes. We Demo It Live., starting at 16:18.
Sam Nadler [16:18]: Yes. Let's do it. I'll tee you guys up. So this is a SpaceX themed week. And, yeah, I mean, SpaceX IPO ed, I think, four business days ago really recently. Sometime in the last twenty four hours, their valuation peaked above Amazon. They also just confirmed in the last twenty four hours that they're going to move forward with that acquisition of Cursor. So just a lot going on with SpaceX. We covered it a little bit last week. Jordan's a huge believer. I think there's obviously an immense amount of value there. Whether it feels frothy right now at this moment, personally, I think it does a little bit, but would love to Jackson, you seem to have some controversial thoughts. So let's start with you.
Jackson Reiter [17:02]: I guess so. Yeah. I mean, do should we talk about the valuation first and the IPO? Which, by the way, you said it happened four business days ago. Though the IPO happened quickly at the time, it feels like it happened months ago already with just the sheer amount of information about it that's been in the news. I went to school for economics, and a lot of my friends in my classes, they all went on to, investment banking, Wall Street, more in the finance sector. They're all currently taking their bookshelves of investor books and, valuation manuals, and they're just lighting them on fire. They're kindling the fireplaces right now. I don't think my controversial opinion is I don't know if that's a bad thing. We did shift. I mean, if you think back to the original stock market, company values were based off of, I don't Know, kind of a goodwill news and brand and a little bit like that. Then it shifted into, earnings multiples. And now we're kind of in, like, an opportunity cost era where it's people have talked about it in terms of debt and how much we can leverage things. It's just opportunity cost. Like, is SpaceX have the opportunity to do these big things?
Jackson Reiter [18:03]: People are less buying the stock and more placing bets on that, I think that's where a lot of the hype is coming from.
