SpaceX news sends DXYZ soaring to $185 ?
Price is Out !
The news on SpaceX shares’ price is finally out.
And it is not too far off from my earlier prediction. Click here ! to read, Repost to share ok. Tks. (see below)
This is the latest news from Bloomberg.
Based on the newly revised valuation of $350 billion, each share now works out to be $185.
This versus the quick-fire ball park calculation I did and arrived at a $189 per share. Not too shabby, right… Hee hee.
What Is Happening ?
Elon Musk’s rocket company SpaceX and its investors have agreed to buy shares from its employees, valuing the business at $350 billion.
According to an internal email seen by Bloomberg, the privately owned US business, in which Musk owns a 42% stake, and its backers are buying the stock at $185 a share, up from $112 a few months ago.
The transaction values SpaceX at approximately $350 billion, according to the report, with the Financial Times also reporting the same valuation.
The figure represents a near doubling of its reported value a year ago, when another employee share sale valued the business at $180 billion.
SpaceX and its investors have reportedly agreed to buy up to $1.25 billion worth of employees’ shares, with the company alone offering to snap up $500 million.
I wonder if DXYZ will have the opportunity to increase its stake in SpaceX during this tender offer ?
Investors in SpaceX include:
-
UK-based investment company Baillie Gifford.
-
US venture capital firm Sequoia Capital.
Musk’s personal fortune, the biggest in the world, has soared since he helped Donald Trump win the US presidential election with his financial heft.
The day after the election, the Tesla chief executive’s wealth was estimated at $264 billion, with his 13% stake in $Tesla Motors(TSLA)$, making a substantial contribution to that wealth.
According to Bloomberg, Musk is worth $384 billion.
Other Businesses & Valuations.
Musk’s other business interests include:
(1) Artificial intelligence startup xAI:
-
Founded in July 2023.
-
Recently achieved a valuation of $50 billion.
(2) Brain implant company Neuralink,.
-
Reportedly worth $8 billion.
(3) X, formerly known as “Twitter”.
-
Bought it for $44 billion.
-
Its valuation has slipped after major advertisers withdrew spendings from the platform.
-
So Mr CEO, amplified his presence on X, where he has more than 200 million followers, helping engineered pro-Trump messages during the US presidential campaign.
SpaceX and Tesla already earn substantial sums from US government contracts, and the financial community expects Musk’s interests to flourish further under a Trump administration.
In October 2024, SpaceX, which also owns the Starlink satellite internet unit, secured contracts worth more than $700 million from the US Space Force.
According to a recent New York Times analysis, both SpaceX and Tesla have received at least $15.4 billion in government contracts over the past decade.
If you have read up to this point in the post, I am certain the question on your mind would be:
DXYZ Still Worth Investing ?
With $DXYZ tied to innovative industries and strong market catalysts, many believe (myself included) that DXYZ stock has further upside potential.
DXYZ has a significant investment in SpaceX, with approximately 37% of its portfolio allocated to the company, making SpaceX the largest holding in the fund. (see below)
Portfolio as of 30 Sep 2024
Other holdings:
The other companies in the fund worth a mention include:
(1) OpenAI - 5.1%.
It is opened knowledge that OpenAI is restructuring, paving the way to become a public benefit corporation.
As part of its restructure, it is discussing new terms with its investors, including $Microsoft(MSFT)$.
In particular, OpenAI is mulling to remove a provision that prevents MSFT from accessing its most advanced models once the company achieves artificial general intelligence (AGI).
If and when the clause is removed, the benefits OpenAI stands to gain includes (a) increased fundings and resources, (b) enhanced collaborations and innovation and (c) strengthen its market position.
It will make OpenAI more valuable and benefit DXYZ funds directly due to its 5.1% stake in OpenAI.
(2) Epic Games - 3.7%.
It is a renowned American video game, software developer and publisher. It was founded by Tim Sweeney in 1991.
Epic Games is best known for developing popular video game franchises such as:
-
Unreal Tournament
-
Gears of War
-
Fortnite
In addition to game development, Epic Games is also a leading provider of 3D engine technology through its Unreal Engine, that is widely used by game developers and other industries.
This gaming company has some serious backers:
-
Tencent: A significant investor, holding a substantial 40% stake in the company.
-
Sony: The Japanese entertainment company has about a 4.9% stake in Epic Games, strengthening the partnership between the 2 companies.
-
The Walt Disney Company: In February 2024, Walt Disney investment gave it a 5% stake. More important, it is a strategic alignment between the two entertainment giants.
-
Kirkbi: The investment company behind the LEGO Group, has a 3% stake.
With a $32 billion valuation, Epic Games is still in the red. (see below)
Through the years, there have been rumours about Epic Games going public. So far, it all comes to naught.
However, at some point in time, going public will be on the card and it makes financial sense.
Epic's main rival in the game engine space $Unity Software Inc.(U)$ went public in September 2020. The IPO valued Unity at $13.7 billion but Unity's share price has surged thereafter, peaking at $35 billion.
However, it has since dipped below IPO’s valuation. (see above)
Will DXYZ’s price be the same as SpaceX’s offer of $185? Will it grow in tandem as SpaceX’s valuation continues to grow ? I cannot wait to find out.
Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks.
-
Do you think DXYZ will continue to rise higher ?
-
Do you think DXYZ other investments will value add to the funds as they IPO over time?
If you find this post interesting, give it wings! ️ Repost and share the insights ?
Do consider “Follow me” and get firsthand read of my daily new post. Thank you.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Pls "Re-post" so that more get to know. Tks! Rating is important (to me).
Consider "Follow me" and get first hand read of my Daily new posts? Thanks!). Tks!!
Wondering aloud if this CEF will continue to charter new highs today ? Afterall its 52-week high was $105, still a long shot from SpaceX tender price of $185.
Should I just hang onto it a wee bit longer ? Decisions, decisions but nonetheless a "good" one..