tech
Jim Cramer says SpaceX investors aren't buying earnings
CNBC's Jim Cramer said SpaceX investors are betting on Elon Musk's vision and track record, rather than the company's current earnings power.
TL;DR
- Investors are buying SpaceX stock based on Elon Musk's potential to create transformative businesses, not its current earnings.
- SpaceX's valuation is heavily influenced by the 'cult of Musk' and his track record of building category-defining companies.
- The company's diverse ventures, including Starlink, reusable rockets, and AI ambitions, contribute to its growth potential.
- SpaceX's acquisition of AI coding startup Cursor for $60 billion in stock deepens its push into AI and software development tools.
- Skeptics questioning SpaceX's valuation have found it costly, as buyers continue to drive the stock price up.