Jim Cramer went on television to explain that SpaceX investors don't care about earnings. They care about Elon Musk. This is the investment thesis of a divorced guy buying Supreme hoodies at age forty-seven.
Buying a company because you like the CEO is called a parasocial relationship. It's what teenagers do with streamers. It's what lonely people do with podcast hosts. Apparently it's also what happens when you have enough money to buy pre-IPO shares in a rocket company.
SpaceX builds rockets. Rockets cost money. They explode sometimes. The business model is "launch things into space and hope someone pays for it." Traditional investors would want to know if revenue exceeds costs. Musk investors want to know if he posted anything funny today.
Cramer says they're betting on vision and track record. Vision is what you call a plan when you don't want to show the spreadsheet. Track record is what you call luck when it happens to the same guy twice. Elon has both, which means SpaceX is worth whatever number makes the last guy feel smart for getting in early.
This is technically a valuation method. It's called the Greater Fool Theory. You buy an asset not because it's worth the price, but because you think someone dumber will pay more later. The twist here is that the fools aren't getting dumber. They're getting richer. Which means the price can go up forever, or until Elon gets bored and buys a social media company instead.
Cramer delivered this analysis with a straight face. He gets paid to do this. You watch him for free and then buy call options on companies that don't turn a profit. He's not the problem here.
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