Ca$htag$: Starlink Google Searches Back SPCX Demand as Company Disrupts Legacy Giants

Petallides alongside Kevin Hanks there live at the Ce. And it's time cash checks. And for that let's bring in Swann co-founder of like folio. And we're looking at some specifics the data. What's on your mind when it comes to space. What are you f with likeio? Yeah. Hey, thanks for having me on. This is this is, I think going to be the, this company of the, thedeO obviously was really big and and everyone's got opinion bullish or bearish. But when you lookt what they're doing misunderstand him. I think that Elon Musk is the greatest entrepreneur of the world has ev seen. And he has set his sights on some incredible goals withceX. And, you know, he's talking about bringing internet to everyone, bringing phone service to everyone, and doing so with probably the best moat in the history of businesses, right? I mean, you're talking about you can't compete if you don't have a ite in the sky. And he's built the business that puts satelln the sky faster, cheaper, more reusable than anyone else. So I think that this is a company that everyone should be seriously considering ing in. The data that we've got just on the Starlink side of thingss unbelievable. The demand is up 1 a year over year basis. And and I think thist point is reallythe e folio, we look at when pple talk about switching from one service to another. And, you just to give you an idea, if you're talking about like phone car AT&T to Verizon or something like that, you know, those are always 50, people switching switching out. If you're talking about people switching to Starlink from another service carrier, it's an 89% rate, 8 to 1 where people are talking about switching Starlink from someone else. And that's the highest we've ever seen, like folio. This is that's mark of a dominant service in an industry. So that's that't of a game changer. I think that we can be very confident about. And then of course, you know, you've got obviously you've got the AI, which is very concerning on a CapEx level. Thaat's the one that'ing up all the money. But, you know, they're putting they're inv a lot of money into it. And they're doing so with, again, the idea of a huge moat in the future. It's, it's a little bit far away when you look at how much cash they have. We'll talk abouthat. The run rate doesn't get there. But you're talking about, you know, free energy, basically solar panels that that pull in about eight times the power of solar panels on earth debate the physics. But, you know, a lot of people believe it's free cooling up there. And so they're going to have a huge advantage in the future when it comes to that. You know, they just acqui the the spectrum service so that they're going to actually be able to compete with voice. So you guys are just talking about providers there. AT&T, you k T-Mobile, Verizon, if you're an investor in t you've got to be concerned. And you can kind of see here what just theh engine growth has been around on this chart here has been aro Starlink. I mean it is it is growing at huge numbers. Everyone's starting to figure out that it's it's the best service when it comes t internet. I personally still haven't got there yet, which is crazy. Andy has I need to, you know, you know, hook into that. But when you look at just what people are talking about on the airlines, it's unbelievable. There are studies that show the consistency of, of high speed on, on airlines. you know, thege is around like 30% on each airline. The top airlines are in the 90s and they all have Starlink. And the two holdouts, JetBlue and Delta are two and 4 respectively. So tve abysmal Wi-Fi and they're sort of refusing to come o board with SpaceX and Starlink. So ty're basically what I'm saying is SpaceX is doing everything that Tesla did 15 or 20 years ago, and the same kind of bears are saying it can't wk. They're going to run out money. It's all the same story again. And if you just want to rewind and look at what Tesla did, I think that's what you're going to see what SpaceX is going to do. Again, I think this is this is led by someone who absolutely understands how to completely change the game in whatever indust he's attacking. And right now he's attacking well, he's creating satellite services, but he's he's creating rocket launches as a moat. But he's, he's attacking internet speed. He's attacking phone carriers. And then he's going to be attacking AI as well. So this is, think, a great opportunity to own maybe the best company in the world ten years from now. So if you can't tell, we're bullish on the data side. And then I'm personally bullish just based on all the all the anecdotes thatted as well. And you know we use the word disruption a lot in business and trading. And Elon Musk, I don't know if the word dir does justice to what he's doing to the overall economy. Listen to these segments. Automotive yet T. Okay. Aerospace. Yes. SpaceX. Telecommunications. Starlink energy. Tesla and SolarCity financial services x.com. PayPal. Something that he's done in the past infrastructure, the Boring Company, artificia intelligence, open AI x AI, social media that when he bought Twitter, he is disrupting so many parts of the U.S. economy and changing them. And oh, by the way, all for the better. It's nothing short of incredible what this g done, and he does it all at such a high quality. It's really quite incredible. Now, we're not here to this is not the Elon Musk fan clu although it could But we're here to be able to trade and make money and be profitable. SpaceX is the company tt we're focusing on right now. It seems to me, unles wrong and I'm not expert in this, he's almost doing this just because he's got the whole infrastructure for it already set by doing other things. And so this isn't going cost him an incredible amount of capital or CapEx to g done. AM am I thinking of that right? It's almost like he's it o this? I, I, I can almost picture my mind, right? I mean, he's, you know, you go back ygo and the goal him is, well, we've got to make humanity multiplanetary so it can survive as a species. So we're going to build all these rocket and it's got to be reusable. We got to make it cheap. And then years later he's like, you know, we could put satellites up and everybody could have internet. Let's do that. Like, because like you said, because he's got theinfra. So and, and that is by far, I think, the largest ever created by mankind other than like, you know, obscene government regulations that you can't get around actual, you know, human to human moat, g stuff in space. Orbiting is an unbelievable one. And I think you're right. I k its is a good opportunity and it's going to help a lot of people and going to make a ton of money and everybody's going to have better internet. So let's t. And I think that's kind of how things happen now, you know, again, back p it back to as an investment, you got to you got to understand the situation. I they've got about $100 billion in cash and they're burn it pretty quickly, most of it ironically, on AI, because you think that's all abe rockets. Rockets are really expe Well, they're they're not even close to what most of the money ig towards. And youee here on this chart, it's all aboutAIl going in there. Now that revenue is growing at 250% pace right now year over year, it's 2.6 billion. But they're they're dumping way more than that into into AI. And so I think that's, that's the concern as an investor. And then, of couhe second concer is what's the float look like? I think it's 4% right now as theseps release. There's one today. There's another one coming in a couplef weeks. There's more down the road. And so there's a, there's going to be a l of people with the opportunity to sell. And so, you know, on the on the plus side, the volatility is going to go away to a degree. But on the on the downside, you know, if these people that have lockups release, if they choose to sell, obviously that's selling pressure that wasn't backed by buying pressure. So it's going to pull the stock down. So you've got to weigh that as as a potential investor as or as an investor. But I think that on the institutional side, there's af room for for money coming into this. Almost no funds are into this right now. You know, it's, it's just not a, a, an attractive name based on the fundamentals. It's very s. Like I said, SpaceX is the same as Tesla 15 year ago. There's all the reasons to doubt it. And all of the, all the people a going to continue to say it's not going to work. It's not going to work. It Tesla worked out. ds changed the world as far as automoti self-driving. I think SpaceX is going to work out the same way. It's just goty moats around it, and it's br too much profitability and good to the world that I just I just believe that it's going to work. And again, the data supports it. Iean, demand doubling on a year over year basis, 89% of people who compare Starlink to its competitor are switching to Starlink. We have nevera number that high. I mean, when you talk about like on on cloud over Nike at like 60% over Lulu at like 65% YouTube TV over Netflix in the high 50s, we've rs people realizing, whoa, this service is way, way better. Everyone's flocking to it. And I think that as more and more people fly, they're go to be like, wait, why is my internet so fast? Oh, it's Starlink, and then they're gonna go home and they're going to Starlink. So that's the revenue driver for th's the one that co to people most closely. But obviously, you know, the rocket moat is unbelievable. And then down the road, the A with with centers out in space and grok competing with anthropic and OpenAI, I think is sort of the long run investors, you got toas understand the situation. Not as much c they need. As as runwe going to be able to find ways to get it. They do have a $47 billion backlog of orders. But, you know, I just sy believe not only in Musk but also the mission of the company and the data behind it on as far as like folio says that the demand is there, it's surging thank you for all of thal, we you brought us and your thoughts here on space. It's been very different than many of the other segments we've done together, so we