#314: Can SpaceX Really Be Worth $2 Trillion?

0:00So good, so good, so good. Everything you want for summer is at Nordstrom Rack Stores now and up to 60 % off. Stock up and save on the brands you love like Vince, Sam Edelman, Frame and Free People. Join the Nordiclub to unlock exclusive discounts, shop new arrivals first and more. Plus, buy online and pick up at your favorite rack store for free. Great brands, great prices. That's why you rack. The 2025 revenue was 18.7 billion, up 33 % from the year before. However, it made a net loss of around 5 billion. Now, on an adjusted EBITDA basis, the company reported 6.6 billion in profit for the year.

0:42But that's not including stock-based compensation, depreciation costs on the Starlink satellites, and then most importantly, AI CapEx.

0:50Emmet:I mean, right off the bat, right off the bat, that's bland for a company that's going to go between 1.75 and 2 trillion. Like 33 % revenue growth? Come on. You can do better than that.

1:09Emmet:Welcome to Stock Club, the podcast where we find and discuss stocks that anyone can buy, many of which we believe will go on to grow your wealth. Mike, Investicon, 27th of August, 2026, Dublin, Ireland, specifically the market bar for a day of tapas and wealth creation from, among others, my investing superhero, David Gardner, co-founder of The Motley Fool. And apart from leaving with the top investment ideas from our many guests, you will have first refusal on anything else Investicon may do in the future. And I suspect that may be something you'll want. So listen up, folks. Hop on to investicon.ie.

1:56Emmet:Early bird tickets are still available. And when they're gone, they're G-O-N-E. They're gone. You want to be at this. you will make friends and make contacts and most of all be one of the early attendees that's something that we have a vision for that is bigger than i can articulate right now so get on to investicon.ie and you will be treated favorably forevermore and apart from anything meet some wonderful people mike how are you this week struggling struggling with small but we spent a few days in london it was what 35 degrees every day yeah come back down to france and it's been 34 degrees both days so i'm waiting for this weather to break i'm dying slowly so our american listeners are going dang that's cold no we mean celsius folks that is extremely hot so what is it that's like close to 100 i think maybe it's in the 90s anyway yes i think it's in the 90s there's a formula this is the most boring way to open a podcast in the world but i've already said the formula to translate fahrenheit to uh celsius is every five degrees above 32 every nine degrees above 32 fahrenheit is five degrees celsius so 41 is five degrees 50 is 10 and then add 18 there'll be 68 is 20 add 18 again to that i'm terrible doing maths this is a great podcast so far so 86 is 30 is that correct join our measurement podcast it's a spin-off like right folks as you can see we have something here did you know that gravity on earth is 9.81 meters per second squared we're going to do all the planets so 35 degrees is 96 fahrenheit there you go i'm impressed i'm not going to tell you my brain hack i think i had 96 but you know if i if i spell out my brain hack as soon as you said 35 i thought 96 do you know i'm actually no i won't i won't i'll save it for the other podcast because it's no completely nerd central no one wants to know how the sausage is made um what are we talking today any big ipos coming up last week we spoke about cerebrass which is um a couple of weeks ago which was the second biggest ipo of the year i think we said it on the pod um but one promises to overshadow them all and by them all we mean every ipo to date excluding saudi emco including oh so we have the behemoth of all ipos coming up none other than everybody's favorite space company spacex so uh we thought we'd do a little bit of a podcast to shed some new angles on this company that we've all heard about and the industry we've spoken about here on this podcast very many times and it's eponymous founder who we have also spoken about very very many times and there's so many things you can talk about um from the industry to the company to the founder we figured well let's just start with the brass tacks and you and i divided up uh the the roles and responsibilities on this particular analysis where you mike are going to talk a little bit about the company that is being brought to market what they're saying and i'm going to talk a little bit about the founder elon musk like as if he needs any introduction and before we go there it's funny because i believe that some companies only illuminate or become real in our minds when we see them like i was invested in under armor at least 10 years before i ever saw one of their products in real life and probably the same for lululemon i invest in that so far so probably 15 years before i even saw one of their garments in real life same for deckers outdoor who were the and are the makers of oak boots and i i have the longest history of investing in companies before i ever experienced them and netflix is probably my biggest example where i was a shareholder for at least 15 years before i had a touchpoint with the product it was just a word in black and white on my screen and now and there's dozens more um where i invested in something uh that i never really got to touch and feel now they were all b2c business to consumer so spacex does not and cannot fit the mold but it's of such a scale and size starlink has its customers you know uh you're you're living you know this is true you're absolutely suburban dublin so you're not really you know the target customer but there are plenty of people in ireland you're absolutely right i have set up a commission to starlink and you know something when i when i was thinking about what to say on the podcast i didn't have a dotted line between the starlink and this little diatribe you're absolutely right um but the business is culturally omnipresent now and whether it's accessible or inaccessible to you our listener through starlink or literally just you know of it uh it is something too ginormous to to i suppose ignore for start i mean most of us i think will never ride on a spacex rocket or deploy satellite or buy a launch vehicle many of us might buy starlink but the company really does occupy a huge amount of mental real estate among other types of real estate that's normally reserved for the very largest public corporation.

7:38Emmet:So I thought it's going to make an interesting chat, Mike. And what I'll do is I'll hand over to you to give us a little bit of a flavor of what is happening. What are they selling and when and how? Ready to soundtrack your summer? With Red Bull Summer All Day Play, you choose a playlist that fits your summer vibe the best. Are you a festival fanatic, a deep end DJ, a road dog or a trail mixer? Just add a song to your chosen playlist and put your summer on track. Red Bull summer all day play. Red Bull gives you wings. Visit redbull.com slash bright summer ahead to learn more. See you this summer.

8:17Yeah, yeah. So it was loads to unpack with this, with the S1, with how the IPO was happening. But we'll just run through the facts and figures first. So it's going to be listed on the NASDAQ under the ticker SPCX. Targeting a valuation between 1.75 to 2 trillion. It's aiming to raise between$50 and$75 billion, so it would make it the largest IPO in history. You mentioned Saudi Aramco, that would raise$29.4 billion. So very likely it'll double the largest IPO ever. Golden Sachs is the lead underwriter after David Solomon organized a kind of mass DMing on Twitter to Elon Musk, which somehow worked.

8:56It's expected to list on the 12th of June. It hasn't fully confirmed that date yet, but that is kind of what people are expecting to happen. Now, jumping into the numbers, so 2025, revenue was$18.7 billion, up 33 % from the year before. However, it made a net loss of around$5 billion. Now, on an adjusted EBITDA basis, the company reported$6.6 billion in profit for the year, but that's not including stock-based compensation depreciation costs on the starling satellites and

9:29Emmet:then most importantly ai capex which is i mean right off the bat right off the bat that's bland for a company that's going to go between 1.75 and 2 trillion like 33 revenue growth come on you can do better than that you can and there's very much uh a lot to unfold with it um of course it's not where it is today this is the company exactly really have to think about where it's headed looking at you know the last 12 months revenue is is a weird way to value it but it is still going for a valuation of like you know if it goes at 1.87 trillion that's 100 times revenue and now what is it doing to justify that 100 times revenue figure we'll see um but probably what's most telling for investors i think was from q1 a company made a 4.3 billion loss in that quarter alone so that's just three months um so expenses are extrapolating here uh there's three main divisions starlink makes up 61 of last year's revenue at 11.4 billion with 4.4 billion in operating process profits it's got 10 million subscribers roughly across 160 countries uh a very sustainable, high margin business there.

10:47However, I suppose when you were going at something so beyond global scale, like as in this is going to be the largest IPO in the world, is great targets of being a company that transcends this planet. Starlink feels like just a very normal business in that sense. Do you know what I mean? It's kind of just, that's a normal business. it's connectivity huge huge potential there internet connectivity we all know is is a utility

11:19Emmet:i'm not saying doing it flying the the the rays from space is not ordinary but it is a utility yeah and there's somewhat of a roof there in terms of the growth that it can derive and it's not a hundred times revenue business as you said there are utility comparisons so that's the first division, that's the cash cow right now. Second is the launch services division. This is all the cool stuff, the rockets. That actually only grew at 8 % year over year. It's worth 22 % of total revenue for 2025. However, the most important figure to look at when you're looking at this division is the backlog, which is sitting at$28.4 billion.

11:59And there's also, it's quite opaque because there's a lot of eternal launches for Starlink there that don't count as revenue, even though it's how that business operates. So it is muddy to look at, but obviously the way the space race is going, we see it firsthand. And in terms of higher capacity rockets and satellites, SpaceX is almost monopolizing that side of it. And now the next one is somewhat the controversial one. It's the AI division. So this is XAI, it's Grok, that merged with SpaceX in February pre-IPO. and it only contributed 17 % of total revenues, about 3.2 billion last year. And so it says obviously Grok subscriptions and then data center infrastructure, compute power, stuff like that as well.

12:48And it is spending money like crazy to become the next major player, I suppose, in the AI race. So XAI posted losses of 6 billion in 2025. So that's more than the rest of the business, obviously. It's the last leader here. And then it burned another 2.5 billion and Q1 alone on CapEx of$7.7 billion. However, this is a big however, March 2026, it signed a deal, SpaceX signed a deal, its XAI division signed a deal with Antropic worth$1.25 billion per month through to May 2029 with this Colossus data center that has 220 ,000 NVIDIA chips built into this absolute behemoth that I think was constructed in 120 days.

13:37So while that is incredibly loss-making division and you can see where all the money is being spent, that is just a glimpse of the potential there as well. Yeah, and it was a very well-timed announcement.

13:50Emmet:I mean, you couldn't but help look at that. What is it, one and a quarter billion a month? Is that what you said, 1.25? Yeah, going up to May 2029. So that contract alone is worth 40 billion over its life if it is seen through. Now, there is a big asterisk on that. Either party can terminate within 19 days notice, which I guess is, you know, nearly 4 billion quids worth of compute power. But it just shows that the amount of money being spent, SpaceX is positioning itself and XAI is positioning itself to be there for this huge infrastructure build-out that we feel like we can't go an episode without talking about.

14:26But how can you not when it's so dominant in the market right now? um so that's the three business divisions you can see where the money is going it's a bit weird we talked about this already like as in starlink especially but then also obviously the launch services too they're very intertwined and starlink can operate so profitably because of the launch services there too and then you see the backlog the launch services have that's an unbelievable business and it looks like elon musk has kind of he converted that business into a cash cow for his AI initiatives. Now, there's a glimpse of the potential of those AI initiatives, but do they need to be the same company?

15:11That's the thing. That's a question that maybe goes unanswered. And the reason for that comes down to the control of the business. So Elon owns 42 % of shares, but he controls about 85 % of voting power, thanks to this dual class shareholder structure. So him, mostly him, he owns 93 % of these class B shares, which have 10 votes to every one for class A shares. Obviously, the class A shares are the ones that are going to be IPOing. So this essentially means Musk can do whatever he wants. He maintains absolute voting control over executive compensation, board seats, and obviously major strategic pivots like the XAI acquisition.

15:52It was described, there's a bit in Matt Levine's piece, today yesterday a major pension fund described it as the most management favorable governance structure ever brought to the u.s public markets at this scale and that's what it is because this is a company absolutely dominated by one man and there is no guardrails really in place even in terms of it's now based in texas so any shareholder there's also a huge limit on shareholder lawsuits because there is a rule in texas where you can only bring a bring a lawsuit if you own over three percent of shares which is tough to do because it would have to be you know based on its target valuation of 50 billion dollar shareholder and that that's going to be i don't really feel like a active investor is going to go 50 billion dollar deep into maybe bringing a case against someone who already controls 85 % shares.

16:49There's also like more roadblocks in place in Texas than there would have been in Delaware, where most of this kind of corporate legal scene is set. So it's a bit of a dictatorship. And it really feels like Musk can do absolutely whatever he wants. Like the fact that the XAI deal went through so smoothly is a testament to that. that's not the only issue as well there's also issue of float so right after the IPO there's only going to be about five percent of the float available to buy within the IPO so there's going to be a lot subject to lockups until at least August and then on top of that it's aiming for a 30 percent retail investor allocation for the IPO compared to most IPOs do less than 10 percent Now, that's not a bad thing.

17:41Having retail investors involved in these processes is good, but it definitely feels like SpaceX are targeting the Musk fanboys, the Tesla fanboys, which have followed the stock, which have bid up Tesla to a trillion dollar valuation as some would say very questionable valuation metrics behind it. and maybe the SpaceX management team, which basically just Musk is trying to recreate that here. So yeah, it's a bit murky. I don't really know how to feel. Yeah. Oh, I have to finish. You're going to love this one. There's a quote from the S1. This is so up your alley. We believe we have identified the largest actionable total addressable market in human history with a whopping$28.5 trillion TAM, uh 370 billion to space 1.6 trillion to starlink and a 26.5 trillion to ai so that uh that includes spacex orbital data centers in space powered by direct solar energy um yeah i know you love the big i don't think we've ever had a bigger than a 28.5 trillion when it comes to 28 trillion i mean

18:59Emmet:uh the one which one was it matterport it used to be matterport was a spec they did kind of google maps for inside of properties so you could go in and have a nosy around the house or an apartment or a commercial space and click your way around the house you still see it here and there but in their s1 they had or no no it was their investor document they didn't need to do an s1 because there were spec to spec um they said there's something like the number the value of all properties that don't have internal mapping done a huge number it was 10 to true it's crazy so i thought it would be interesting just to do a level set on understanding what does elon musk own i don't mean just spacex but what does he own all together and so we all know tesla is probably the brand the next person on the street most knows elon musk for and he owns owns about 12 percent of equity um and a whole pile of options that account for another eight percent so he is their largest shareholder so let's say he owns about one-fifth of tesla he owns as you rightfully said something 42 43 percent of equity in spacex and he as you rightfully explained has super voting shares so he controls something like 78 to 85 percent of the voting power he previously owned xai or 54 percent of the shares which folded in spacex but let's let's ignore that for now um he is the majority owner of x aka twitter he is the majority owner of neural link which is not publicly uh disclosed the value that's not disclosed uh as it's not for x and he also is the majority owner of the boring company.

20:48Emmet:And his actual control is often much greater than his economic ownership because of all these magic tricks that you touched upon and the use of these dual class voting structures. And SpaceX is now probably the single biggest contributor to his net worth, especially after the XAI merger and indeed this IPO coming up in a couple of weeks. And his stake in Tesla is smaller than many people assume because of repeated stock sales and compensation structures and dilution, which reduced it over time. However, the unexercised options, they are hugely valuable. And we had a whole debate about that on the podcast recently.

21:29Emmet:And his companies, these companies are becoming increasingly interconnected. And this is where the story i think gets especially interesting uh tesla buys from spacex xai spacex buys mega packs and cyber trucks from tesla um x and xai and spacex are increasingly functioning like one ecosystem it's one big ball it's it's very uh nepotism is rife in that family of of businesses so on that last point the one that they're all buying from each other cnbc reported yesterday i was watching on speculation that is intensifying around potential future merger between tesla and spacex and that's no surprise to you or me mike and i don't think it'd be a surprise to our listeners but spacex as you said is expected to debut you know one dot something trillion in value you know whether it's 1.25 1.5 1.75 or even 2 trillion in value um uh and tesla is currently worth about 1.6 trillion dollars so they're very comparable from a how much do we need to spend to buy this whole company metric right they're more or less neck and neck but seemingly sources familiar with the matter uh say that musk has spoken with a lot of colleagues in recent times about combining the two companies into a single entity.

22:58Emmet:And it's just a fact that Tesla and SpaceX are so already deeply intertwined operationally. The companies share engineers, they share board members, they share suppliers, AI infrastructure, and even procurement. Tesla recently invested$2 billion into XAI while SpaceX has purchased Tesla Megapacks and Cybertrucks, as I said, for its AI data center operations. And this is, I thought this was gas. NVIDIA reportedly redirected GPU shipments from Tesla to XAI at Musk's request. Like, so stick that up your governance jumper. Like, hold on a minute. So is the truck gone out with those GPUs? It is, where's it going to?

23:44Emmet:It's going to, where's the Tesla? Is it Freenos? Fremont, California. Fremont, Fremont. Send it to Texas. Yeah, it's like, I got to turn around and where is he off to? Send him from Tesla down to Texas. But I mean, come on. But what I found really interesting was that the strategic rationale increasingly revolves around AI as opposed to the cars and the rockets. So the hardware, we're starting, I think we're all starting to see and feel the fact that the stuff you can touch, the hardware is really becoming less valuable and that the value lies in the intelligence. And this is a really strong example of saying that this merger is an AI play as opposed to, well, we can build better cars with their rocket engines or whatever.

24:36Emmet:Like Tesla's AI work focuses on autonomous driving and robotics, as we all know, and SpaceX is building a massive compute and satellite infrastructure. And together, they're both spending tens of billions annually on AI-related CAPEX, capital expenditure. So a merger would be massively, massively complex legally and financially. But Musk's voting control over SpaceX makes resistance futile. And if he wants it done, it's probably going to get done. I know a lad, Mike, in the US who had a small chain of biscuit shops, cookies, a cookie outlet in a state in America. I'm not going to say the state because that will identify him.

25:24Emmet:And he bought three coffee shops in the same town. And he couldn't merge them. He couldn't do it well. So can you imagine SpaceX and Tesla merger? If my friend with the cookie shops has anything to say, he'd go, I don't be doing that, lads. Very complex. The MBA studies told us, and I should have listened. Yeah, well, yes and no, though. Because, like, the SpaceX-XI merger. Oh, yeah. They're all probably in the same office anyway, same Christmas party from what we're gathering. this x ai thing is you know on paper one of the most incredible creations of value anyone's ever done oh just decided you know i'll create this business i'll get a bunch of investors i'll buy billions and billions worth of chips essentially and create a couple of data centers and now sell it to my own company that i and i decide the price and it's worth a billion quid it's worth close to 500 billion quid or whatever it it's all a bit nuts and like i don't i don't really get it i don't know he's getting away with all of it and i fully believe he has the intentions to merge with tesla as well oh yeah how study and play come together on a windows 11 PC.

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27:08Emmet:How can they let it happen? The day that you're referring to don't exist because they have no power i mean he would be the biggest beneficiary because he'd be the kingpin in one giant ai and infrastructure conglomerate spanning transportation energy space satellites robotics and most importantly it would appear ai and here's my view there really is nobody in humanity's history with control over such a vast empire and i'm talking about humanity's history i mean there was a time when land was the measure of a ruler or an emperor who was conquering new lands and stealing land that was a very clear metric of of um power success and and and dominance but one person now today is controlling the lion's share of humanity's most future relevant resources our question is he though do you know what i mean like as in there's all this talk about it but he's they're miles behind in terms of ai they're nowhere close no one is talking about using grok over anthropic or claude or chat gpt or gemini so there's an argument maybe they're fourth or fifth in ai and there's just this ridiculous musk multiple on anything he does that they get these crazy valuations like as in look at the revenue from xai it's you know a couple of billion anthropic is doing 45 billion i think the ai you well that's a very good point i have not heard of anyone saying that they're outsourcing an activity to grok they're just not doing it yeah i mean it's just it it it it's part of this whole mystique that he's created and the stock market follows like as in it's kind of a nut situation if you own shares in spacex from the start and then all this stuff happens in the space of six months where like now the main objective is creating a identity centers in space and it's like what what happened like isn't this is the most exciting uh science public company private company before all this started and you kind of go along with it because now you're going to get an even bigger payout on your IPO day.

29:26But I don't know what's going on, to be frank. The more I read, the more confused I get because it's just all over the place. Solar-powered AI data centers in space. Like, what is that?

29:41Emmet:You have to think bigger, Mike. I do, I do. I don't have the vision. I'm in my little... You don't need to plug an electric fan to keep it cool. You just open the door. In fact, don't even put a door on it. Just put it there. it's chilly up there nothing yeah so but i just i just feel like it's the most outrageous big claims and he's he's just there's just a litany of these outrageous big claims like tesla is still trading at what one and a half times straight it's more it's a larger company now when its sales are are depleting and its car company is going south because there's this promise of robots and like robotaxis that are so far behind google and i don't know i'm waiting to see the first bit of evidence from the robots too you know it's the personification of vision like so if you take um the waymo example you just made there the self-driving google self-driving car doesn't have a human being out front saying we are going to conquer everything with our driving car it it has spokespeople but like elon musk's brand now is in its own right as large possibly larger than steve jobs and when you have that the halo effect hits everything you talk about if he was bringing out um a new uh type of spring you know for doing a pogo stick it would be the best pogo stick in the world do you know what i mean yeah no it's almost pogo stick it would be on 10 headlines and everyone will be talking about it like a way you're going to walk around like a normal person we're gonna i'm gonna hop over here like next gen i don't know i don't know i'm just ranting now at this stage but it is you are but here's my question to you mike if someone said take 10k and put it into spacex now with a implied market value of 1.5 trillion but you may not keep your seller shares for uh let's say five years or you keep your 10k but you're free to buy only spacex shares post ipo would you take them now pre-ipo at 1.5 trillion or would you wait till they float which is a proxy for me saying that do you think they're going to fall in value after they float so would you take it now or wait would you hold tight and you have to do one of them there's no i'm not buying it i'm not listening to you no i would take it now because i think the way the ipo is set up and it's going to be a real mess and i didn't really get into this when i kind of went through the s1 stuff but so there's a very small amount of shares being floated about five percent which is yes you said that unusually small and because of the size of the company the indexes are basically considering adding them straight away so this is i already talked about this in the past it's not just spacex it'll be open ai and anthropic as well and it makes sense because you're coming public at such a large size you're such a you represent the industry portion of the overall market how could you not be included in these indexes that are supposed to track the entire market.

33:00So if you have a tiny float, and then you have all the indexes that have to buy these shares, so if you are Vanguard's S &P 500 or Vanguard's NASDAQ index, it doesn't matter what the price is. You just have to go buy these shares. So that happens. They bid up the price. You've got the crazy Elon Musk fanboys who want to own everything. They're buying it up. and then you've got speculators who see all this happening and they're buying it up too it's kind of you know it could be a free-for-all especially very early on especially before more liquidity hits the market so yeah i don't know what could happen spacex could be worth like three or four trillion dollars by july you know it could it could go 100 200 from its ipo price

33:49Emmet:and this is the thing when you think of the other businesses that are up in the multi-trillion range whether it's amazon or apple um of google of course they more or less touch every first world life in the world more or less i mean amazon touches every life privileged life in the world um as does apple as does google but the spacex i'm not saying that's a metric for evaluation of course not but it is interesting but you can look at metrics for valuation too you know there's any oh yeah yeah any comparison it sticks out like a sore thumb and it could very much like be the largest company in my market cap there's a very real chance of that do you know the way you and i this feeding frenzy happens you and i as we're speaking about something recently about how a lot of businesses and their uh investor relation decks powerpoints um talk about revenue per employee right yeah and you know it's usually the ones that are proud that usually have more than a million bucks revenue per employee what do you reckon it's that spacex expert price of a sandwich um yeah well yeah it's price for beer yeah or you go the other way and go market cap by employee and it's up often astronomical oh yeah yeah well there you have it well the one thing that is not that is without debate is that they are on the bleeding edge of the future of humanity like you know i was talking about data centers in space we acknowledge it's quite a stretch but it's not impossible and um if you're gonna bet you'd bet on spacex no that's a fair point and like oh there's a lot of ways you could go with this is it grim that we're talking about interplanetary travel and the first thing we do is like yeah we better put flipping data center up there yeah well i have to say i i cannot i've almost lobotomized my thinking on the very company we spoke about on a couple of podcasts ago cerebrass who have basically squashed a thousands and thousands of gpus onto a single wafer to make their product a factor multi multi-factor more efficient and powerful than nvidia's and we are somehow tethered in our thinking to the nvidia gpu and it has to be cool and we'll send it up to space and when i was talking about cerebrus i i was kind of i couldn't i mean i i know enough to be dangerous but not enough to be informed i'm not too sure if we're gonna need space centers data centers if in fact the wafers get smaller and more efficient why would you just stick them in the other data center we had it's going to get a thousand more thousand times more efficient well and like look we had a conversation in london about quantum do you know what i mean and that's so far away from yeah what we're doing now and in terms of scalability and the volatility of that and i know it's not a in any way a sustainable solution but that process is going to become more efficient and refined i think we're a lot closer to quantum than going out and constructing data centers on the moon maybe maybe i'm right i don't we should have you as the futurist for rte you know um we're talking about again when we're in london i was saying how arthur c clark used to be employed as a futurist for nasa and he had remarkable accuracy and insight into the decades that were yet to come i think in the 1960s he kind of laid out a roadmap for technology which was just hauntingly accurate the guy described um like in 19 if you google this folks or stick it into youtube arthur c clark interview on the future there's a black and white video he was australian british author of 2001 space odyssey i said odyssey odyssey amongst many other books as i'm sure most of our listeners know and but his real job was a futurist and his quote which i've overused and which i'll always love is that suitably advanced technology is indistinguishable from magic so somebody from 30 years from now came back and showed us stuff stuff that neither you nor i mike nor anyone listening has imagined or seen it would be indistinguishable from magic i'll ignore the time travel bit um but like arthur c clark was able to say in 1974 i think that black and white video on the tv on youtube is uh he's he had he's talking to an interviewer and there's i think there's a child with them and he said oh by the year 2000 we'll all have a small device in our pockets it would look like a flat television but we'll be able to interact with it and book cinema tickets and tickets to the theater and find our way around the city with this device i mean this guy was talking about the iphone 50 years 40 years before it was invented and he spoke about robotic surgery um like think of the da vinci uh intuitive search surgical da vinci robot he described that with frightening accuracy he said doctors will be able to operate on someone in the uk from a console in australia which is a reality i doubt they do that but it is possible today and the only thing he broadly got wrong was he said in his writings that we'd all have a monkey servant by now like we'd all have a monkey in the house but while humanoid robots i wouldn't make him a servant he'd be one of the family you know like bowie my dog but anyway um you should be the artistic clerk for rte the radio television the irish broadcaster and you can go i just think it's an awful waste of money yeah look i definitely i don't have the vision right now but look there is also the element of this big vision stuff shouldn't be given 100 times sales valuation unprofitable business shouldn't be going to hit in the public markets at 2 trillion and making the financial impact it will on a lot of investors uh who will act as liquidity will act as exit liquidity first who will be buying their their you know s &p 500 indexes or their nasdaq indexes and be set with this behemoth through no fault of their own.

40:32So that's where the ranting is coming from. But yeah, look, I don't know. I definitely do not have the vision. And I could be proven wrong. But I just, I'm wary about this IPO. There's so many red flags around it.

40:49Emmet:Oh, look, humanity is inefficient. Most normal folks, if they were to stack rank, the biggest problems to be solved would put a thousand things ahead of some of the things that SpaceX most of the things that SpaceX is out to do but that's what a visionary delivers on the they imagine bigger and the benefits that ultimately come downstream are beyond our imagination now and are going to set us up for the next wave of mega innovation in 20 and 30 years so So SpaceX IPO folks, it's one you're going to have to watch. It's the year of IPOs. It's getting exciting. Our job, Mike, is going to get a whole lot more interesting because we had a bit of a barren wasteland for a while post-batch.

41:32Emmet:Very much so. It was like, oh, what's floated on? Higginbottom's hat stretchers and consolidated taxidermy. Higginbottom hat stretchers sounds like something I need. Oh, yeah, true, yeah. We've won customer, and me too. Right, Mike, we're going to finish that conversation because it's time for Following Profit, where you or I will spotlight one of today's profit recommendations. But I'm going to talk about four of Profit's current 10 stocks. So Profit is our just tell me what to do service. It always holds 10 stocks. It rebalances every fourth Friday. And as usual, I want to caveat this piece by saying we are talking about companies in the knowledge that profit may sell it in a couple of weeks.

42:20Emmet:We do not know. I would not action anything I'm saying here. So the profit portfolio was rebalanced on May 22. And the next rebalance will occur on June 19th, 2026, which is four weeks later. It's performance. When you need to build up your team to handle the growing chaos at work, use Indeed Sponsored Jobs. It gives your job post the boost it needs to be seen and helps reach people with the right skills, certifications and more. Spend less time searching and more time actually interviewing candidates who check all your boxes. Listeners of this show will get a$75 sponsored job credit at Indeed.com slash podcast.

43:00That's Indeed.com slash podcast. Terms and conditions apply. Need a hiring hero? This is a job for Indeed Sponsored Jobs.

43:07Emmet:I don't think there's any service out there. And actually, I say to our listeners, if you can find a service similar to profit that has outperformed it, email me, prove it, and I'll unlock profit for you free of charge. Because there is nothing that comes close. Its performance in 2026 is it's up 33.5%. Its performance for the last 12 months is it's up 44%. Its performance over the last five years is it's up 193%, which is nearly a three bagger. Your money multiplied by three. Its performance over the last 10 years is it's up 626%. And its performance since inception, as I talked today towards the very last day of May, It's up 2 ,295 % since inception in December 2009.

44:00Emmet:Its graph is literally a Nike curve that's just gone up with a few little jaggedy bits. So this month on the 22nd of May, there were three sales. It sold DICOM and locked in a 16 % profit. it sold sterling infrastructure which after just 28 days in the portfolio was up 47.42 percent and it sold vertive holdings um for a very marginal gain of just over one percent so three stocks were sold all were in the green and the three it replaced them with i thought was very interesting but one is a name that needs zero introduction to anyone on the planet and i'm just going to say so it bought a couple of days ago as a replacement for those three coca-cola so our algorithm has determined that coke has a reasonably good chance of having going on a little run i would not buy coca-cola i would only buy the 10 stocks because it's a system um profit is still only 1999 dollars on useprofit.com but if you really want to deal before we do something radical here uh email frank at my wall street.com frank at my w-a-l-l-s-t.com and that's profit and frank does exist he is a real person oh yeah i feel like the more i feel like the more we say that the less believable it is and i want to get yeah it's like the lady dot story going yeah frank oh frank the real person yeah yeah frank exists for sure yeah oh yeah and then i slowly wink frank's real right mike well frank does exist he's as real as real as the nose on my face this is it the more you say it the less believable it is i swear to god frank's real i promise okay we leave it at that before we actually speak frank into an existence thank you very much for joining me and listening to me ranting and raving like a lunatic today And thank you all for doing the same thing.