Just because a stock has lost 70% of its value doesn’t mean it can’t lose 70% more.
Jokes on you because it never had any real value to begin with
While I detest Elon, the company definitely has some value. They’re still the global launch leader at this time. That said, their valuation based on promises of AI and asteroid mining is complete nonsense.
It had value, before it bought xAI.
Now there’s an infinite money pit attached to it
Rocket launch, Twitter and xAI is roughly a zero valuation.
Starlink the worlds fastest growing ISP, while having an enormous profit margin is the bread and butter. From a serious perspective, also what you should aim the valuation for.
Did their IPO launch at a fair valuation? Hell nah
Starlink the worlds fastest growing ISP, while having an enormous profit margin is the bread and butter.
Starlink has only had one profitable year ($70m total), and that’s only if you exclude the cost of rocket launches and only count selling end user hardware and subscriptions.
Literally almost the entire infrastructure of Starlink has to be “rebuilt” every 8 -10 years, because that’s how long their latest generation (v3) satellites last in average before they deorbit due to the air drag at low orbit or their electronics fail due to the higher radiation in Earth’s orbit
Their business model hasn’t even been proven to be profitable outside niche markets where they’re the only solution for Internet and there are enough people/companies who can afford and are willing to pay a big enough premium for that service that it offsets Starlink’s costs of having to manufacture and launching replacement for their satellites, all of which invariably die after about 10 years.
The whole scheme is a shitshow of one company propping up another with fake revenues and profits.
Or
If people are stupid enough to invest without understanding valuation, then they deserve poverty.
