Key insights
- The post analyzes current multiples of the Magnificent Seven stocks and compares them to potential acquisition multiples for Cursor by SpaceX. It suggests the market might be ready for high multiple acquisitions, particularly in the AI space, given current valuations. This could signal continued bullish sentiment and willingness to pay premium valuations for growth, potentially benefiting AI-related stocks.
I just compiled current multiples for Mag 7 and forecasted multiples relevant to the news about Cursor and SpaceX SpaceX: ~$16B proxy revenue → ~3.8x multiple Cursor: ~$2B ARR → ~30x multiple
NVDA 22.60x TSLA 15.29x MSFT 10.66x AAPL 8.69x META 7.43x GOOGL 4.85x AMZN 3.74x
Is the market ready for a 30x multiple acquisition? I'm inclined to say yes because I've recently been of the opinion that nothing is real anymore and I'm quite tempted to throw away everything I know about investing.