I wonder where all of this money is going
SpaceX at $100 Would Imply Zero AI Value, Morgan Stanley Says
21–30 of 33 posts
Re: SpaceX at $100 Would Imply Zero AI Value, Morgan Stanley Says
#22It’s surprising to me that any investor in public stocks thinks share price is related to anything other than what investors are willing to pay. If everyone thinks price will go down, it doesn’t matter what underlying value exists, people will sell off. You hold on if you think investors will wise up at some arbitrary point in the future and buy it again. Which could theoretically be related to the value of AI, but i…
It's not surprising; anyone who thinks share price is something other than what investors are willing to pay has become someone's sucker.
And the industry could not exist without a strong foundation of suckers.
Re: SpaceX at $100 Would Imply Zero AI Value, Morgan Stanley Says
#23It’s surprising to me that any investor in public stocks thinks share price is related to anything other than what investors are willing to pay. If everyone thinks price will go down, it doesn’t matter what underlying value exists, people will sell off. You hold on if you think investors will wise up at some arbitrary point in the future and buy it again. Which could theoretically be related to the value of AI, but i…
Stock price does not need to match company value *in the short run*. But company value exerts a tug on the share price, it won't succeed in pulling the share price to the correct value but it will in time correct the swings. Think of walking a dog on a long leash--the dog will wander but will end up where the human goes. Or even well-behaved dogs without a leash.
Re: SpaceX at $100 Would Imply Zero AI Value, Morgan Stanley Says
#24Nah, it might also imply 0 Grok value or 0 value in what Morgan Stanley says
Re: SpaceX at $100 Would Imply Zero AI Value, Morgan Stanley Says
#25Earlier quoted context omitted.
Renting data center capacity to AI providers might be the best business model out there, currently related to AI. Surpassed possibly by hardware manufacturers.
I'm not so sure. Is there really a demand for more AI data centers? Has anyone been turned down by OpenAI or Antrophic because they are out of capacity?
There's certainly demand for more data centers. Whether there's demand for the services those data centers would provide remains in question.
Re: SpaceX at $100 Would Imply Zero AI Value, Morgan Stanley Says
#26Re: SpaceX at $100 Would Imply Zero AI Value, Morgan Stanley Says
#27It’s surprising to me that any investor in public stocks thinks share price is related to anything other than what investors are willing to pay. If everyone thinks price will go down, it doesn’t matter what underlying value exists, people will sell off. You hold on if you think investors will wise up at some arbitrary point in the future and buy it again. Which could theoretically be related to the value of AI, but i…
The underlying fundamental value is dividends, and the assumption that they will eventually be paid, after a growth period. I think a lot of people have forgotten this.
Re: SpaceX at $100 Would Imply Zero AI Value, Morgan Stanley Says
#28I yearn for the days when companies were judged on profit. Not ideology. Vibes. Hypes. Tweets. White House visits. The goddamn singularity.
When was that?
Late 80s. Back then my stock was actual paper certificates that I kept in a safe deposit box. My RIA lived in the town next to me and that was the only way I could make trades, and it took days to close and weeks to get your certificates. And I didn’t trade. I gave him money and he built my portfolio. The rise of online trading gamified the system that we have today.
Re: SpaceX at $100 Would Imply Zero AI Value, Morgan Stanley Says
#29xAI did lose all of their founders and they are rebooting the company because it was "built wrong"
Re: SpaceX at $100 Would Imply Zero AI Value, Morgan Stanley Says
#30It’s surprising to me that any investor in public stocks thinks share price is related to anything other than what investors are willing to pay. If everyone thinks price will go down, it doesn’t matter what underlying value exists, people will sell off. You hold on if you think investors will wise up at some arbitrary point in the future and buy it again. Which could theoretically be related to the value of AI, but i…
That's a bit lazy. Elon built a cult following, and that's what defended TSLA for a few years now, since there was no longer a story of infinite growth, or growth at all.
"Everyone thinks" but not for no reason. Henry Kissinger was one way Elizabeth Holmes made everyone think.