Space Exploration Technologies Corp. (NASDAQ:SPCX) was among the stocks on which Jim Cramer commented, as he emphasized that SpaceX investors are betting on Elon Musk rather than the company’s earnings. Cramer discussed the company in detail during the episode, as he stated:
You got a communication system in Starlink that could replace almost every internet service provider in the world. It offers a superior product for as little as a third of the price, so I don’t see how Starlink can be stopped.… Frankly, I think Starlink could end up with a billion subs just from people in rural areas with bad broadband connectivity… It’s got a rocket business, which, just for scarcity value, could be worth, well, I don’t know, name your price, because no one else has been able to reuse and relaunch rockets on a regular basis. It’s got the old Twitter, which can be worth something if you put in the right management. Then SpaceX has its AI business… Nobody seems to care too much about the near or even medium-term numbers.
Instead, most buyers are looking at what SpaceX could be down the road. I like this. I think you could expect Musk to take over his sister company, Tesla, which would put him entirely in charge of his empire… You get a massive auto business, including self-driving, terrific battery business just getting started, potentially a gigantic robot business. It’s the latter that I think is the most important product, and if it connects with Starlink, I believe you’ll have a robot operation where they’ll easily do what you want… Let me tell you what I think, what I see: when you buy SpaceX here, you’re really buying Elon Musk’s brain.
I think the cult of Musk is for real, but that’s not the right way to look at it. What you need is to look at this as something different from an ordinary stock. That’s how you really justify paying up for SpaceX. Hey, look, maybe for some, it’s a keepsake… They’re never going anywhere. Finally, some are betting on the biggest meme stock ever. Last night, I saw this stock go from $190 to $213 overnight. It was an incredible move… So it was deliberate overnight buying to push the stock up.
Space Exploration Technologies Corp. (NASDAQ:SPCX) manufactures and launches reusable spacecraft for orbital payloads and government missions, and provides satellite-based broadband internet. Additionally, it operates an artificial intelligence platform comprising computational infrastructure, user applications, and the X information network.
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