I have a question for people who are buying the stock today. I am not trying to criticize the company. I read the S-1 report. I am trying to understand how the price makes sense.
Gwynne Shotwell said that making the company bigger is very expensive and she does not want to focus on how money the company makes each quarter. The report shows that this is true. In 2025 the company made 18.7 billion dollars in revenue. It still lost 2.6 billion dollars. The AI part of the company spent 7.7 billion dollars in the quarter of 2026 but it only made 818 million dollars in revenue. The company is losing money now.
I would really like to hear from people who think the stock is an investment. There are two things in the report that I do not understand:
1. A big part of the companys revenue is from a contract that pays 1.25 billion dollars per month until 2029.. Either party can cancel this contract with just 90 days notice. How can we be sure that the company will make 15 billion dollars per year from this contract if it can be canceled easily?
2. The companys plan for growth depends on the Starship project. The report says that Starship will make its first delivery to orbit in the half of 2026.. The report also says that this project involves technologies that do not exist yet and it is hard to say when they will be ready. The stock is trading at about 95 times the companys revenue. How much of the companys success is already factored into the stock price?
Then there is the way the company is structured. The Class A shares get one vote. Elon Musks Class B shares get to appoint most of the board members no matter how many Class A shares other people own. The company is also not following the rules for independent boards.
To put it simply: the public investors are funding the part of the companys growth and they are being asked not to judge the companys performance each quarter.. They have no way to influence the board if they do not like what they see. The only thing they can do is sell their shares.
The company is definitely extraordinary. That does not mean that the stock is a good investment. The S-1 report tells us a lot, about the company. It does not tell us why the stock is worth the current price. What is the reason, based on the report that the stock will grow into its price?