SpaceX Loses $600 Billion in Value Over Three Days

Summary

Pierre Ferragu of New Street Research discusses the recent $600 billion selloff in SpaceX, attributing it to cautious AI trade sentiment and profit-taking near stretched valuations. He highlights risks to memory stocks Samsung and SK Hynix from potential demand destruction due to Apple's iPhone price hikes, and maintains a neutral stance on Apple itself due to limited upside.

• SpaceX lost $600 billion in value as cautious AI trade and profit-taking weighed on the stock.
• Two-thirds of SpaceX's valuation is tied to long-term space and data center dreams, with only one-third from the near-term Starlink telecom business.
• Concern arises as large tech companies like Uber rein back AI spending, creating a cautious sentiment across tech.
• Memory stocks Samsung and SK Hynix fell after Apple cited unsustainable memory shortages and planned iPhone price increases.
• Higher iPhone prices risk destroying demand, reducing memory demand from consumer electronics and potentially pausing the high pricing environment.
• Memory stocks appear very expensive on a cost-of-goods-sold basis, making investors wary.
• Pierre Ferragu is neutral on memory stocks and Apple, citing limited upside potential and healthy valuations for Apple.