Bill Ackman Reveals “Important Cornerstone” of SpaceX’s Value That Will Surprise Many

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Bill Ackman, the investment legend who runs the show over at Pershing Square (NYSE:PS), has been quite vocal in the past month. Whether it’s remarking on the value to be had in the quality stocks or investors’ preference for going after the “new new” stocks, it certainly feels like the playbook of many is out with the old and in with the new.

With the Space Exploration Technologies (NASDAQ:SPCX) IPO enjoying an incredibly smooth landing for a more than $2 trillion titan, the preference for expensive, but new and exciting kinds of stocks over old, but cheap and high-quality, I think, hasn’t been this pronounced in quite a while.

I guess the big question is whether the “new new” premium — or in the case of SpaceX shares a massive “new new” premium on top of a scarcity premium on top of the Elon Musk premium (perhaps the heftiest premium of them all?) — will begin to fade away as investors wake up to the real value to be had in the old-school kings of quality, including members of the Magnificent Seven.

SpaceX is the king of “new new,” and that’s the place to be these days

Time will tell. But I think Mr. Ackman is right on the money to highlight such a trend. Sometimes value does lie within the obvious, rather than the novel and exhilarating. When it comes to SpaceX, perhaps there will be no other IPO that takes investors for such a ride until Anthropic’s moment comes. Given Claude’s impact on the working world and how “dangerously” good something like Mythos or Fable 5 is, I do think that Anthropic’s IPO will be fireworks.

With Mr. Ackman more recently commenting after SpaceX went public, the man gave what I believe is an invaluable take on one of the absolute hottest stories on Wall Street. Indeed, just about everybody has been chiming in about SpaceX of late.

From the skeptics eager to short or buy a few bearish put options to the bulls who are more than willing to punch a ticket at over $200 per share, it’s hard to avoid the SpaceX buzz. There’s no shortage of interest in both camps, and it will be interesting to see how the name trades through the summer, one that could be hot for stocks as Wells Fargo calls for an “everything rally.”

SpaceX’s valuation as a strategic advantage

Whether SpaceX will go from hot to scorching, though, remains the big question. It’s already a $2.5 trillion titan. How much further can it go? In any case, Bill Ackman seems to think that the firm is using its size to its advantage.

For a heavyweight with a multi-trillion-dollar market cap, it can pull off $60 billion all-stock deals (like the acquisition of AI coding startup Cursor) with relative ease. I think Mr. Ackman is right on the money. What’s more, is that SpaceX might be able to unlock next-level synergies as it gives its xAI business a much-needed supercharging.

Indeed, Grok might not be the hottest model in the world, but if you tie Cursor in, suddenly, SpaceX’s AI business starts to look rich with potential. If the “everything rally” drives SpaceX shares to even higher highs and the $3 trillion mark gets cracked, perhaps it’s not out of the ordinary to expect more deal-making in AI.

When xAI starts getting more powerful, it’ll just feed the company’s profoundly dominant space business. While the price of admission might be steep, it turns out there are benefits to rising up the market cap ranks earlier in this AI revolution.

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