Valuations

SpaceX is an amazing company but this valuation is insane. The idea that it’s even close to as valuable as Microsoft or Amazon is bananas. SpaceX still isn’t even profitable, so its price-to-earnings ratio is literally infinity. It’s halfway through Thursday as I post this and SpaceX is down ~10 percent on the day, so a touch of sanity is being restored, at least at the moment.

Cursor, with $1 billion in sales, certainly isn’t worth 60x revenue — especially in a business where it too isn’t profitable. But who cares when you’re paying with funny-money stock?