Shares of SpaceX (SPCX.US) climbed more than 4% at the market open on Wednesday, extending their rally into a fourth consecutive trading session.
Since its public debut last Friday, the stock has surged close to 50%, propelling the company's total market capitalization to approximately $2.73 trillion and making it the world's sixth-largest publicly traded company.
Noted investor Duan Yongping commented on the company's valuation, stating that after a recent review of SpaceX's history, he has gained a better understanding of the market's high valuation assessment.
He expressed the view that the company may not necessarily fall into a "bubble" category.
Duan pointed out that if SpaceX can achieve an annual profit of around $150 billion or more in the future, a corresponding market valuation of roughly $3 trillion would not be considered unreasonable.
He suggested that reaching this level of profitability within a 5 to 10-year timeframe "seems plausible."
However, he also emphasized that this assessment fundamentally hinges on whether SpaceX can indeed achieve and sustain such a profit scale over the long term.
Reflecting on the company's development trajectory, Duan stated he was "deeply impressed" by its technological and business model capabilities and maintains an open attitude towards its long-term growth potential.
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