CNBC commentator Jim Cramer said investors are piling into SpaceX because they
are betting on Elon Musk’s ability to build disruptive companies rather than the
firm’s current profitability. After last Friday’s IPO SpaceX quickly became one
of the world’s most valuable companies; the stock rose about 5% on Tuesday and
its market cap topped several tech giants including Amazon and briefly exceeded
Microsoft. The rally has intensified questions over the reasonableness of an
approximately $2.5 trillion valuation. Cramer warned that traditional valuation
metrics may miss what buyers are paying for, saying the company could incur
losses for years and that such a high valuation may be unjustified; he added the
stock’s appeal extends beyond any single forecast, despite Musk’s projection of
up to $1 trillion in annual revenue by 2030. "Buying SpaceX is buying Elon
Musk," Cramer said.
