so $SpaceX(SPCX.US) obviously blew the doors out with those earningsespecially if Elon gets anywhere close to his goal o…

so $SpaceX(SPCX.US) obviously blew the doors out with those earnings

especially if Elon gets anywhere close to his goal of bringing 20GW online by next year

the question now seems to be what this means for every other neocloud

SpaceX is up today, the rest are flat to red.

On one hand, $SpaceX(SPCX.US) proved how important the neocloud business model is and how much demand is out there.

On the other hand, $SpaceX(SPCX.US) was so good that now people are doubting the ability for other neoclouds to easily finance their operations, how quickly those companies can bring compute online compared to Elon, and how much debt/dilution SpaceX themselves will have to take on to finance that buildout which then begs the question around how much dilution the smaller players will have to take on. SpaceX is also profitable whereas the others are years from profitability.

My take is more that $SpaceX(SPCX.US) has validated the entire concept of neoclouds which obviously have been under stress given the $Coreweave(CRWV.US) bonds getting hit over the past two weeks, but the earnings were also so good that there might be more questions now about how well the others can execute.

The broader theme seemed to be legitimized from those earnings: the compute constraints exist and have not eased up in any meaningful way.

Source: amit