Yep even Anthropic’s claim of a positive profit month is allegedly just some initial free compute from SpaceX until they start paying monthly. These companies don’t have standard trustworthy financials.
I agree that a system in which we reward one man for building a vast loss-making empire is fundamentally broken and will eventually need to correct course. Elon Musk is not the problem, the irrational valuations of his (and his team's) work are. This said, the article is not terribly articulate in it's arguments and clings to an anachronistic view of how capital markets currently allocate wealth (and I am deliberately avoiding saying "how capital markets work" because I can't see this model working too long past this current wave of massive hyped up IPOs). Also, just to throw spice into the conversation, I bought into the IPO and cashed out above $160. So thanks for that.
"That’s equivalent to an estimated total of more than 11,000 microplastic particles in each Danone
Happy Baby Organics pouch, and more than 5,000 particles in each Nestlé Gerber Organics pouch." - Wow.
Is there going to be any accountability to the people at NASDAQ who made this decision? Surely the big investors not on the inside of SpaceX must be mad about these shenanigans? Or is it all an insider's club, where each party is hoping for their own turn to make a big gift?
On that topic: this is both entertaining and scary, especially the bit that says they fast-tracked into the NASDAQ 100 so whether you like it or not you have to buy into Elon Musk's financial house of cards. https://www.youtube.com/watch?v=IHD8BDFYyGI
Naive question but you could move all your stuff out of NASDAQ before the IPO right? The downside is that you'd have to keep it out of NASDAQ until SPCX is finished cratering it?
It make it more solidly clear how this really is an IPO for all 3 orgs: SpaceX, X, and xAI which helped me understand more of the video.
> The Launch segment posted $4.1 billion in revenue but a $657 million operating loss, driven by roughly $3 billion in Starship R&D — a deliberate strategic bet, not a distressed business.
All in all it reflects a ton of what the youtube video says though (I haven't finished the video though). It adds some color.
At the moment, the economics of software are out of whack. It's not about agentic replacing traditional painstakingly coded applications, but more about the massive influx of capital, and the subsidies from the newcomers to try and gain ground and demonstrate aggressive growth. In the early 2000's, Facebook's growth was described as "selling dollar bills for 90 cents." That is where we are now. Nobody will know for sure where all this lands until companies have to demonstrate their worth through real profits and stable growth.
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