Key insights
- The author contrasts the tangible, revenue-generating growth of AI with the speculative nature of many space stocks. While AI adoption is widespread and backed by companies with strong financials, space companies are often valued on future potential rather than current operations or revenue. This suggests a potential bubble in space stocks, driven by narrative rather than fundamentals, unlike the more grounded AI sector.
I mean we can see AI happening all around us, with perhaps 200m people or more using it on a daily basis and the biggest adopters of this are just like companies with positive revenue, crazy earnings yoy. It is changing the way we have been living for good or bad.
Whereas most of the hottest space stocks are not even turning over a revenue, are not even operational for the most parts or impacting people on a daily basis now. It's all just selling on possibilities now. Stocks like RKLB won't even impact the common folk at all. ASTS still have to wait till it's operational. SpaceX is already operational with starlink yea, and now with their massive valuation which doesn't make sense financially and honestly don't hear of anyone around me using it.
So what do you yall think?