SpaceX at $100 Would Imply Zero AI Value, Morgan Stanley Says

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SpaceX at $100 Would Imply Zero AI Value, Morgan Stanley Says

(bloomberg.com)

16h

by toomuchtodo

anon7000
616h
It’s surprising to me that any investor in public stocks thinks share price is related to anything other than what investors are willing to pay. If everyone thinks price will go down, it doesn’t matter what underlying value exists, people will sell off. You hold on if you think investors will wise up at some arbitrary point in the future and buy it again. Which could theoretically be related to the value of AI, but is actually only about a monkey brain’s perception of value.
There is no underlying fundamental reason that makes stock price match company performance or value. It’s a gambling market that sometimes happens to match real financials
1. avaer
  014h
  It's not surprising; anyone who thinks share price is something other than what investors are willing to pay has become someone's sucker.
  And the industry could not exist without a strong foundation of suckers.
2. arealaccount
  015h
  You’re not the only one saying this
  https://finance.yahoo.com/markets/stocks/articles/buffett-to...
3. jackb4040
  015h
  Attention matters when a stock is rising, fundamentals matter when a stock is falling.
4. LorenPechtel
  014h
  Stock price does not need to match company value *in the short run*. But company value exerts a tug on the share price, it won't succeed in pulling the share price to the correct value but it will in time correct the swings. Think of walking a dog on a long leash--the dog will wander but will end up where the human goes. Or even well-behaved dogs without a leash.
5. eudamoniac
  012h
  The underlying fundamental value is dividends, and the assumption that they will eventually be paid, after a growth period. I think a lot of people have forgotten this.
6. idiotsecant
  015h
  The future of markets is a vibes exchange, where fortunes are won and lost based on social media engagement, viral media, and influencer CEOs.
  In the new world order the winners are not value investors and rational actors. The winners are the outrageous, the titillating, anyone who can capture a bit of attention span.
4ndrewl
015h
Is it too late to pivot to Blockchain? https://www.cnbc.com/2017/12/21/long-island-iced-tea-micro-c...
benoau
816h
Isn't that why SpaceX "acquired" xAI?
1. kotaKat
  015h
  Next step is to "acquire" Tesla and give himself full control again.
panny
316h
There is such thing as negative AI value :)
1. ferrouswheel
  116h
  You'd think Morgan Stanley would understand stuffing debt from one failing company into another semi-ok company.
htrp
011h
xAI did lose all of their founders and they are rebooting the company because it was "built wrong"
MadrasThorn
015h
I wonder where all of this money is going
lostmsu
014h
Nah, it might also imply 0 Grok value or 0 value in what Morgan Stanley says
[deleted]
016h
[deleted]
expedition32
216h
I yearn for the days when companies were judged on profit. Not ideology. Vibes. Hypes. Tweets. White House visits. The goddamn singularity.
1. hasbot
  115h
  When was that?