From Starlink to Starship: Colin Symons on How SPCX is NVDA of Space

deep on space X space is our tech spotlight. Joining me right nowolin Simmons CIO Lloyd Financial Group. Thank you s much for being with us. What I thought was interesting was how you now said that space is for space. What Nvidia was for technology or semiconductors. so? It's the leader in the space. So Nvidia represented the AI movement in semiconductor as I think you mentioned earlier, it hit a new all time high tod So that's worked out pretty well to me. Space is the sameeal just with space. It's the same basic idea. e industry. They have their fingers in a whole of the pie. So to me, there are a lot of similarities. I think it's fair to consider s to be the the Nvidia of space. Understood. So at this point now we do s stock at 158. And the IPO price was 135. The high was 225. You like that. It's back above the IPO price. I'm sure many people do. Tell me why you think it can continue to climb. What are some o catalysts that are going right for space X? As I know they obviously they have different groups under the umbrella here.let's go through that a little bit. Sure. The big one is Starlink. That's kind the the one that helps fund everything else. And that ss is honestly all the businesses have been doing great, but Starlink has been growing quite nicely. They have their rocket busines which tomes not really a money makeret, but it's foundational in terms of they're the leader in terms of l get commercial rockets up into space. Starship is their latest version. They just had a launch. Oh, I don't know. Was that Monday a couple days ago, their flight 14 where they showed commercial viability. So Starship can turn into a real business. Andhen they have AI, which is their their segment. And that has seen a lot of good growth, things like Google and Anthropic business.ow do you th they'll continue to expand in enterprise applications with different companies? And so, I mean, you talk about the three differe sort of leadehin the company. They also have X. They are also many other to this story. What could be with rockets, but how will they continue to expand in, in the business world? Sur There's a lot of growth opportunity there, particularly with Staand Starship Again, they're both growing very well. And SpaceX gy demand constrained andply constrained. People are asking for as much cap as you canget, I think the most exciting one me personally is the rocket business and very capacity constrained. The whole industry is capacity consd. that in terms on going quite a while. There are there's a lot of interest in terms of defense applications, communicationsve . There's a lot that can be done with tha Starlink is part of that too. But to me, the rocket business is sort of if there weren't the rocket business, everything else would be a lot harder. And look, I mean, they're working closely with NASA. So that also helps to have that government support, right. Overall, what about where it's trading now when you think about valuati but you also keep in mind the growth trajectory o could be. I how do you justify the current valuation or don't yo Yeah. And w yeah, we've had the valuation discu with so many different companies over the last 15 years or so. this is another one. So it does sell at something like it's so young. The numbers are a little messy, but best guess is it sells itself like a 65 price to sales ratio, which i no doubt expensive. But we've seen that before. And again, the desire to have Starlink, the desire to have Starship, the potential growth AI business, I mean, 65 price to sales seems crazy. But you've seen that get justified in the past. So like Palantir, for instance, used to have a gigantic price to sales ratio. And it's shown that it's earned it. That can absolutely happen here. I can't guarantee it's going to happen, but it can happen. Right? Understood. I mean, I spoke of the NASA deal. NASA awarded SpaceX three morerew missions that were worth nearly $1 billion. It continues to do more and more missions overall. When you think about the competition at this point, do you really think this has some sort of moat? You know, there are other competitors in the space, but the way this is comprised, I don't know whether or not you think they bring Tesla in, but you do have Xai in there. You do have X formerl known as Twitter. So there are a few things under that umbrella, not just SpaceX Starlink, but you see the growth potential. Yeah. And honestly, there's for competition. You should expect competition if you're in a real business. I me anytime you you have a foundationally new system like AI, there's going to be competition, there's going to be a desire. And that includes the rocket business. So there are competitors. You havecket Lt Lab, PL, Plane Labs, I think it's called they. But you know, there, there is room for plenty of them. I mean, there's a couple of different rocket companies, but right now, every single one of at least all the ones that I've found are capacity constrain They e ise for the business, and I don'texe soon. And the question too is, is it so critical, let's say, because some of thesengs can change or evolve or, you know, have competition. But the deal with NASA so valuable that that in itself makes SpaceX valuable? You know, when you think abo Right, you know what I mean? I mean, because that's sortf something that you can't compete with, for example, or they can't be taken away. Are we r too heavily on the fact that it has thesentracts w, everything can change. I mean, the gover contracts go away, but it's a it's a very encouraging sign that NAS wants to deal with them. They're relatively recent defense contracts are also represents very solid interest. But, you know, again, ave so much interest from commercial interests as well. Right now. Looks like the heyday right now. I can't gue as to when this slows down. I mean it's going to slow down, but it could b long time away, especially if the economy stays up. You know, I'll also it just came to mind too. Th still, you know, wehave the n IPO. it just came to mind too. We still have that going on between now and the end of the year. In fact, until next June, when Elon Musk can actually unload some shares. So that may cause some volatility. And I think that was important to add in as well. Right now ate run in one month. It's up 13%. So w we'll continue to watch it. Colin Simons Thank you so