All share price fundamentals based on the long term have this pesky thing called discount rate which means your [hypothetical] earnings from something expected to happen in 2050 get weighted a lot lower than your 2028 earnings and your 2100 earnings barely figure in it at all though.
That's the case on a pure "I could invest my money in something that makes a bigger profit now, and use that money to buy shares in the longer term bet afterwards" basis, but is even more the case when you factor in uncertainty. And "SpaceX's 2026 near monopoly of launch and the 2026 datacentre build rush will still be relevant once we're far enough into the future for inference chips to not need regular replacement and orbital megastructures to be cost competitive with ground ones due to the amount of orbital recycling going on" is pretty uncertain...
I doubt anyone is doing earnings analysis 75 years out. It'll be "this is our best guess of the size of the market over time, and here's what percentage of the market SpaceX will get, factoring in the US taxpayer being a large funder of space and preferring a local company."
The large variance is in the projected market size, but I can see why people might be optimistic. Especially given SpaceX's success in Falcon 9 launches, gradually stealing stats away from the record-holders, who have been mostly Russia/USSR-based[0].
Well yes, nobody doing earnings analysis 75 years out is my point. We're downthread of someone pointing out that most mass and energy is outside earth so in the long run we'll run out if we don't rely on space[1].
That sort of long run probably has even longer timelines than 75 years, and that's an argument which carries almost zero weight to an investor (particularly relative to the one SpaceX is actually making which is using their launch monopoly to make massive profits meeting 2020s inference compute demand) because by the time it happens, assuming it does, the space market is unrecognisable and they've missed a whole bunch of other hype cycles. The bull case for SpaceX depends a lot on what they deliver by the mid-late 2030s being more than expected rather than less and essentially not at all on the constraints and challenges of next century.
[1]I also hear this thesis every week from my own CTO, but much as some VCs like the passion it's not why people fund us...
Well, at least that is what they teach you in college when you learn about the efficient market hypothesis. In reality, investors are getting less rational every year. The modern stock market has become pretty much decoupled from reality.
All share price fundamentals based on the long term have this pesky thing called discount rate which means your [hypothetical] earnings from something expected to happen in 2050 get weighted a lot lower than your 2028 earnings and your 2100 earnings barely figure in it at all though.
That's the case on a pure "I could invest my money in something that makes a bigger profit now, and use that money to buy shares in the longer term bet afterwards" basis, but is even more the case when you factor in uncertainty. And "SpaceX's 2026 near monopoly of launch and the 2026 datacentre build rush will still be relevant once we're far enough into the future for inference chips to not need regular replacement and orbital megastructures to be cost competitive with ground ones due to the amount of orbital recycling going on" is pretty uncertain...
I doubt anyone is doing earnings analysis 75 years out. It'll be "this is our best guess of the size of the market over time, and here's what percentage of the market SpaceX will get, factoring in the US taxpayer being a large funder of space and preferring a local company."
The large variance is in the projected market size, but I can see why people might be optimistic. Especially given SpaceX's success in Falcon 9 launches, gradually stealing stats away from the record-holders, who have been mostly Russia/USSR-based[0].
[0] https://spacestatsonline.com/rockets/most-launched-rockets
Well yes, nobody doing earnings analysis 75 years out is my point. We're downthread of someone pointing out that most mass and energy is outside earth so in the long run we'll run out if we don't rely on space[1].
That sort of long run probably has even longer timelines than 75 years, and that's an argument which carries almost zero weight to an investor (particularly relative to the one SpaceX is actually making which is using their launch monopoly to make massive profits meeting 2020s inference compute demand) because by the time it happens, assuming it does, the space market is unrecognisable and they've missed a whole bunch of other hype cycles. The bull case for SpaceX depends a lot on what they deliver by the mid-late 2030s being more than expected rather than less and essentially not at all on the constraints and challenges of next century.
[1]I also hear this thesis every week from my own CTO, but much as some VCs like the passion it's not why people fund us...
Well, at least that is what they teach you in college when you learn about the efficient market hypothesis. In reality, investors are getting less rational every year. The modern stock market has become pretty much decoupled from reality.
"Everyone is crazy" is a well-measured stance that I can respect. /s
On a serious note, if you think that everyone else loses contact with reality, it's a signal to check and recheck your assumptions.