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SpaceX Stock Plunge Wipes Out $600 Billion After Cursor Deal Spooks Investors (www.forbes.com)
submitted 4 months ago by to c/technology@lemmy.world
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[–] 128 points 4 months ago (14 children)

It's worse than that... what they IPO with is basically a tiny percentage of SpaceX composed solely of xAI

The entire stock market is basically 99.9% blind speculation and 0.1% basic math, which is why it rarely makes sense

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  • [–] 28 points 4 months ago* (4 children)

    It's not even a surprise, this is from SpaceX s-1 document: only 7% of their estimated valuation is from Space related activities

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  • [–] 2 points 4 months ago (3 children)

    Is "Enterprise Applications" like shooting datacenters into space, or copilot business edition?
    I think the "Space-Enabled Solutions" part sounds more like designing satellites than the space-launch business.

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  • [–] -1 points 4 months ago* (2 children)

    They bought Cursor for AI. Earlier this year cursor switched to pay per use model, so now every engineer is spending dozens to hundreds of AI Bucks. I don’t think Cursor is profitable on that yet, but I imagine xAI are looking to scale that model, both to turn Grok into something that earns an income, and to scale up to profit despite cost of datacenters/training.

    I’m skeptical there is really a profitable market, but it might be the most grounded of his predictions. The technology exists, the business model is successful at a small scale, so they just need to scale

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  • [–] 7 points 4 months ago (1 child)

    The technology exists, the business model is successful at a small scale, so they just need to scale

    could you provide details on that?

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  • [–] 0 points 4 months ago

    You could probably research the company but from my direct experience

    • Cursor is one of the stronger contenders for coding - bringing a variety of models to tools where coders are.
    • Cursor switched to pay per use, significantly increasing costs and didn’t lose customers
    • cursor charged more for higher end models and didn’t lose customers
    • grok is not currently there, or at least not what I can see, so is a huge gap from an xAI perspective
    • it seems good enough business model to business people to be worth a huge purchase

    Once grok is added to Cursor, I will just have it, along with a variety of other models, and can simply choose it based on cost and effectiveness. It may even be chosen for me since I usually leave it in automatic, and my company is a paying customer where each engineer spends a budget

    Also it’s more like a subscription. Software companies love a subscription model with regular income, rather than selling something you pay for once

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  • [–] 30 points 4 months ago (5 children)

    That's what I was referencing, I'm surprised the regulators and the exchange let that happen

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  • [–] 60 points 4 months ago (3 children)

    National Bank employee during OWS protest in 2011.

    You are surprised that the people doing this during Occupy Wall Street are allowing this?

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  • [–] 6 points 4 months ago (2 children)

    Who is that

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  • [–] 19 points 4 months ago (1 child)

    One of several people standing on a balcony overlooking an Occupy Wall Street protest in 2011. This woman specifically was at the time believed to be an employee of National Bank but I don’t know if they were ever identified individually.

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  • [–] 10 points 4 months ago* (2 children)

    The entire stock market is basically 99.9% blind speculation and 0.1% basic math

    The US, England, and Japan are all returning to quantitative easing policy. So we've once again got too much money chasing too few investments. What a lot of naive investors see as a market bubble is recognized among the more savvy as a return to our ongoing policy of asset inflation.

    A lot of what SpaceX is selling boils down to an access point to public spending - through sale of military hardware and equipment, network access to Starlink, and R&D funds allocated to the private sector. That's what is really driving investment. It is, in effect, a play on the future of police and military spending.

    Still wildly overvalued imho. But not "blind" speculation.

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