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SpaceX to buy Cursor for $60B

reuters.com

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Re: SpaceX to buy Cursor for $60B

#221

Post by DebtDeflation »

ActionHank wrote: post #78
wmeredith wrote: post #12

"SpaceX told investors during the IPO process that it sees an addressable market for AI products worth $26 trillion, roughly equivalent to U.S. GDP." This is unhinged.

Always fun to remember when calculating TAM - something like 85 - 90% of the world earns less than $1000 usd per month. The math don’t math here, there literally aren’t enough people to afford this and businesses will go under the more people are displaced for gainful employment.

There have been a few recent stories about businesses finding themselves spending more on tokens than they were spending on the workers these AI Agents were supposed to have replaced.

Re: SpaceX to buy Cursor for $60B

#222

Post by DanielHB »

geremiiah wrote: post #167

Here's a shower thought. BTC essential is worth $70k solely through the power of memes. Can TSLA and SPCX remain overvalued (relative to the revenue of their respective underlying assets) forever through the power of memes? Intuitively, it seems to me that there must necessarily be some kind of upper limit, but I'm not convincing myself. These speculative assets are only attractive as long as the price keeps inflatin…

The limits are when companies and institutions start to default on their loans. Or, in the case of governments, trigger hyperinflation by printing money to pay off the debt.

Of course it can collapse before that, but if it gets to that point it is guaranteed to collapse.

Re: SpaceX to buy Cursor for $60B

#224

Post by basisword »

internet101010 wrote: post #210
guidedlight wrote: post #77

Does anyone here think Cursor is overvalued? It's just packaging up what already exists, it has no moat or IP.

Cursor's moat is that it is a virus that infects organizations through shared skills, hooks, agents, etc.. Once one person uses it and infects the repo everyone else starts using it.

Know a few companies that have moved from it fully to Claude. It’s still early so the moving cost is low and Claude Cowork is something non-tech employees can make use of much easier than Cursor. I really don’t see what Curor’s value is longer term. Why pay a middle man?

Re: SpaceX to buy Cursor for $60B

#227

Post by Maxious »

stogot wrote: post #168

the IPO raised $85B and they just spent $60B on Cursor. If this was the intention it should have been in a disclosure Edit: I see SpaceX did disclose

> With the option agreement, we have the right, but not obligation, to acquire Cursor at a predetermined price or pay a fee

> The consideration for the acquisition of Cursor, if any, after the closing of this offering would consist of shares of our Class A common stock based on an implied equity value of Cursor of $60.0 billion

"Collaboration with Cursor" page 12 of the SpaceX S-1 https://www.sec.gov/Archives/edgar/data/1181412/000162828026...

Re: SpaceX to buy Cursor for $60B

#228

Post by petilon »

geremiiah wrote: post #167

Here's a shower thought. BTC essential is worth $70k solely through the power of memes. Can TSLA and SPCX remain overvalued (relative to the revenue of their respective underlying assets) forever through the power of memes? Intuitively, it seems to me that there must necessarily be some kind of upper limit, but I'm not convincing myself. These speculative assets are only attractive as long as the price keeps inflatin…

Michael Burry, a hedge fund investor featured in the book “The Big Short” for his predictions on the 2008 financial crisis, said in a Substack discussion last month that any increase in SpaceX’s stock after its I.P.O. would “be on hype and technicals.”

Here, “technicals” means technical analysis signals rather than the company’s business fundamentals. In other words, Burry is saying the stock could rise because of chart-based trading, momentum, and market behavior—not because investors think SpaceX is truly worth that much based on revenue, profits, or other fundamentals.

How long can the hype be maintained? TSLA is still maintaining its hype, judging by its P/E ratio.

Re: SpaceX to buy Cursor for $60B

#229

Post by Der_Einzige »

petilon wrote: post #228
geremiiah wrote: post #167

Here's a shower thought. BTC essential is worth $70k solely through the power of memes. Can TSLA and SPCX remain overvalued (relative to the revenue of their respective underlying assets) forever through the power of memes? Intuitively, it seems to me that there must necessarily be some kind of upper limit, but I'm not convincing myself. These speculative assets are only attractive as long as the price keeps inflatin…

Michael Burry, a hedge fund investor featured in the book “The Big Short” for his predictions on the 2008 financial crisis, said in a Substack discussion last month that any increase in SpaceX’s stock after its I.P.O. would “be on hype and technicals.” Here, “technicals” means technical analysis signals rather than the company’s business fundamentals. In other words, Burry is saying the stock could rise because of ch…

[flagged]

Re: SpaceX to buy Cursor for $60B

#230

Post by drakythe »

geremiiah wrote: post #167

Here's a shower thought. BTC essential is worth $70k solely through the power of memes. Can TSLA and SPCX remain overvalued (relative to the revenue of their respective underlying assets) forever through the power of memes? Intuitively, it seems to me that there must necessarily be some kind of upper limit, but I'm not convincing myself. These speculative assets are only attractive as long as the price keeps inflatin…

The saying "The market can remain irrational longer than you can remain solvent" exists for a reason.

In short, the answer to your literal question is "no" because nothing remains forever in this world. The practical answer is "yes" because the TSLA stock has been irrational for years already and it shows no sign of stopping.

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