The Biggest IPO In History Isn’t What You Think It Is
From Prof G Markets
Patrick Boyle•Professor, King's College London & former hedge fund manager
Executive Summary
12 quotes
Concerns Raised
Extreme valuation and questionable ethics of the SpaceX IPO and its forced index inclusion.
High concentration risk in emerging market indices, making them a proxy for the AI chip cycle.
Market complacency regarding geopolitical risks and the potential for a sustained high-oil-price environment.
Unrealistic growth expectations for SpaceX's Starlink and the technical unfeasibility of space-based data centers.
Opportunities Identified
Emerging markets outside of the AI chip theme, such as in South America, are showing structural improvements and cheap valuations.
Microsoft stock appears relatively undervalued compared to other hyperscalers, and its renegotiated OpenAI deal doesn't negatively alter its investment thesis.