Cathie Wood defends the $1.75 trillion SpaceX valuation, citing a potential $10 trillion annual revenue stream from Starship-enabled Starlink capacity, despite current operational gaps and a slow launch cadence.
Cathie Wood projects massive revenue from Starship launches, making the $1.75T valuation seem cheap.
ARK Invest founder Cathie Wood argues that SpaceX's $1.75 trillion valuation is undervalued, projecting that Starship's potential to carry Starlink capacity could generate $1 billion in revenue per flight. While Wood envisions 10,000 annual launches by 2030, the company faces significant hurdles in scaling flight cadence and maintaining revenue per terabit as capacity expands.
Wood argues that if Starship reaches a cadence of 10,000 flights per year, each carrying Starlink capacity, the company could generate up to $10 trillion in annual revenue, far exceeding its current market capitalization.
The model assumes a massive increase in launch frequency that has not yet been demonstrated, as well as sustained revenue per terabit, which is currently experiencing a downward trend as network capacity grows.