Pivotal Research initiated coverage on SpaceX with a buy rating because the company might figure out how to reuse its Starship rockets. Might. That's the thesis. A research firm looked at a rocket company that blows up rockets for a living and said yeah, we think they'll stop blowing them up.
The major bottleneck is that Starships keep exploding or crashing into the ocean instead of landing softly and flying again. SpaceX has been working on this for years. Pivotal Research watched this process and concluded that eventually it will work. Groundbreaking stuff. They should charge extra for insights this sharp.
Reusability would change everything because rockets are expensive and throwing them away after one use is like buying a new car every time you need groceries. But here's the thing about coverage initiations on private companies. You can't buy the stock. SpaceX is not publicly traded. Pivotal Research issued a buy rating on shares you cannot purchase unless you're an accredited investor with connections or Elon Musk's cousin.
So who is this rating for exactly? The guy who bought Dogecoin at seventy cents can't log into Robinhood and grab some SpaceX. He's stuck reading about how smart money thinks reusable rockets are the future while he watches his portfolio bleed out in companies that actually have tickers.
The best part is calling reusability a bottleneck like it's some minor supply chain hiccup. Oh you know what's slowing us down? The part where our hundred-million-dollar rocket needs to not explode. Once we solve that tiny detail we're golden. It's not a bottleneck. It's the entire f*cking point of the vehicle.
Pivotal Research believes SpaceX will solve it though. They're probably right. And when they are you still won't own any shares.
Photo by on Unsplash
Leave a Comment