Caveat emptor. Only when tide goes out do u discover who’s been swimming naked. “This sucker could go down”. “Deja vu all over again” Rabbit in the headlights?
The financial house of cards @Saylor built is collapsing. $MSTR's per-share discount to its Bitcoin holdings is soaring, $STRC is tanking, and Bitcoin itself is breaking down, taking the rest of crypto down with it. Soon Saylor will trade in his orange tie for an orange jumpsuit.
SpaceX is a great company and will go on to do great things. But a few months from now we will look back at this moment as peak mania. Investors are pricing SpaceX stock as if the future has already happened.
One of the biggest mistakes investors make is assuming a low forward P/E means a stock is cheap.
Micron traded at a low forward multiple in 2000 because earnings were nearing a cyclical peak.
Then DRAM prices collapsed, earnings evaporated, and the stock lost over 98%.
Today, Micron once again looks inexpensive relative to its expected earnings.
The key question: are those earnings cyclical or structural?
With the SpaceX IPO @elonmusk is the first person to surpass J.D. Rockefeller as the richest private citizen ever. However, adjusted for over 100 years of inflation, Rockefeller earned about $2 billion per year in real income. Musk earns nothing. What a difference a bubble makes.