#capital-intensity

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Venture
fromFortune
5 days ago

To justify a $1.5 trillion market cap after its IPO, SpaceX would need to earn more than Berkshire Hathaway. Today, it earns zero. | Fortune

SpaceX's planned $1.5 trillion IPO valuation appears unsustainably high given current losses, massive capital requirements for 10,000 Starlink rockets, and uncertain growth prospects in capital-intensive industries.
US news
from24/7 Wall St.
1 month ago

Coherent Live: Complete Coverage Of COHR's Q2 Earnings

Coherent Inc must sustain AI datacenter-driven valuation despite strong earnings, rising margins, and stock gains while free cash flow and capital intensity raise execution concerns.
Artificial intelligence
fromBusiness Insider
2 months ago

'Big Short' investor Michael Burry says AI is turning Big Tech into a worse business

AI-driven capital intensity is reducing Big Tech's return on invested capital, threatening historically high ROIC and exerting long-term downward pressure on share prices.
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