SpaceX’s pitch
Elon Musk’s IPO filing is the most audacious in stock market history.
Good Morning.
SpaceX reportedly wants a price tag of at least USD1.75 trillion, which as the FT points out, could seem rich for a company that earns about the same annually as the cereal-maker General Mills. But this is about the future, right?
The pitch rests on a USD28.5 trillion total addressable market that includes digital advertising revenue bigger than Meta and Google combined, and markets the prospectus itself admits don’t exist yet.
At that valuation, the would-be-unfirable Elon Musk will need just 3% of that TAM within a decade, assuming margins and multiples stay in line with those of Apple, Amazon and Alphabet today. “Doable,” I hear all 23 banks involved say.
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Shares in Guzman y Gomez surged on Thursday after RBC Capital Markets upgraded the stock to "outperform”, arguing the market was underestimating the earnings power of the fast food chain’s store expansion pipeline and that a 26% year-to-date decline had created an attractive entry point.
