Bezos succeeded in “God”, but Musk is the real winner

Musk did not go to space by tourist flights, but by taking the lead in realizing the reuse of rockets to bring launch capacity back to the United States.

Musk did not go to space by tourist flights, but by taking the lead in realizing the reuse of rockets to bring launch capacity back to the United States. 

Investors are generally concerned about the most important events happening at the moment, especially those that have the potential to become an investment theme and promote related stocks for months or years to bring returns to investors.

Jeff Bezos (Jeff Bezos) into space falls into this category of events.

Sometimes, what is a big event is very obvious. For example, the big event of this Monday (July 19) is the rebound of the new crown epidemic that caused the U.S. stock market to plummet. The S&P 500 index fell 1.6% that day, and the Dow fell more than 2%. . Although the stock market rebounded again afterwards and continued to rise, the new crown virus variant is a very important issue.

However, investors sometimes have to learn about some things they don’t care about. The most important incident of this kind in recent days is that Jeff Bezos of Amazon (AMZN) “goes to heaven.”

This successful flight may make some people who watch the live broadcast feel unfulfilled. The three people who “goed up” with Bezos made a lot of “Wow” and “Awesome” admiration, but they have recently become the oldest spaceflight ever, 82-year-old Wally Funk (Wally Funk). ) Said: “We only cheered for about 5 minutes.”

Bezos succeeded in "God", but Musk is the real winner

I have been following reports about this flight. And ” People ” magazine (People) reported on the Kardashian family (Kardashians) addiction, I is the story of a billionaire how to spend quite addictive.

The analogy of the Kardashian family cannot be more appropriate. For investors, watching the space race of billionaires is also a kind of entertainment. In the press release after the launch of Bezos’s “New Shepard” rocket, the crew showed us the items carried by the rocket, including part of the Wright brothers’ aircraft and a medal from a 19th century hot air balloon. And Amelia Earhart’s flying goggles.

It is always a good thing for the rich to spend money, and sometimes it benefits others. For example, we can still visit the gardens of the Palace of Versailles. They amaze us and even inspire us.

Everyone, including Bezos, knows that starting a private rocket company will be criticized. Bezos admits that the critics of space tourism are right that the money should first be spent on solving problems on Earth. However, supporters also pointed out the potential benefits of breaking the boundaries of technology, after all, the protagonist in the future may be ultra-high-speed commercial aircraft or flying cars.

But the real meaning of space tourism is not the technological benefits that billionaires’ “money-burning pastime” brings to other people’s lives. The long-term advancement of technology is the theoretical reason why all types of fanaticism can have a positive impact on society. For example, the Internet era has brought us Amazon, and more people have access to the Internet.

But not all fanaticism can have a positive impact. The financial crisis is also driven by technology, such as collateralized debt (CDO) and credit default swaps (CDS) and other financial technologies, but no one thinks they are lucky because of these products. Fanaticism does not necessarily bring useful technology. Just look at the financial innovation of zero-commission trading in recent years. It brings us Meme stocks.

But what the space race has brought to us is that it has made space tourism cheaper than ever. NASA data shows that the space shuttle will cost about $450 million to perform a mission, and the orbiter will cost about $1.7 billion.

The generation of people who studied space shuttle technology at above-average costs in the past left us with: movies like “Space Camp”; American taxpayers’ debts have increased; the United States hasn’t been there for ten years. Carry out an overloaded manned space launch mission.

Now, these things have changed, but it has nothing to do with Bezos or Virgin Galactic’s Richard Branson (Richard Branson). Space enthusiasts should actually thank Elon Musk, CEO of Tesla (TSLA) and SpaceX. Like other billionaires, he also expressed that he has made humans a multi-planetary species. The lofty goal. However, Musk did not go to space through tourist flights, but brought launch capacity back to the United States by taking the lead in reusing rockets. SpaceX will send NASA astronauts to the International Space Station and launch hundreds of small satellites at the same time to provide space Wi-Fi services to customers around the world. SpaceX’s valuation in the private equity market is as high as $74 billion.

In contrast, Virgin Galactic has a market value of approximately $7 billion after launching what Canaccord analyst Ken Herbert calls “for the 1% of the wealthy” service.

However, Herbert gave Virgin Galactic a “buy” rating, and he believes that investors should include this stock in their portfolio. Based on his target price of $48, Virgin Galactic is valued at approximately $11.5 billion. Space tourism may become a long-term business.

This is what the space race among billionaires really means for investors. If Bezos or Branson want to form an organization and then take the organization to space, let them go. These are high-paying jobs for smart engineers. Billionaires can use their money to do what they want.

Even Amazon’s stock doesn’t seem to care so much about Bezos’ success. The stock closed up about 0.7% on Tuesday (July 20), while Virgin Galactic fell 1.3%. Tesla will announce its second-quarter results on July 26. The company’s stock price rose 2.2% on Tuesday, marking the second consecutive day of gains. The S&P 500 index rebounded from Monday’s decline on Tuesday and closed up 1.5%.

Posted by:CoinYuppie,Reprinted with attribution to:
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