Dan Ives on SpaceX: Why the $135 IPO Price Doesn't Matter

just initiated on SpaceX, and you were one of many bullish analysts on that stock. But why no analyst bump as Leslie was just talking about? >> Yeah, I look I think when you look at SpaceX, and obviously have some important launches coming up, I think the most important thing is investors, the longer-term ones, they're going to they're going to view these as speed bumps because you got to ultimately look at this is a story, and we talked about it. It's an AI data story. Space more and more is going to be a huge part of the AI revolution. I just My view in covering tech for decades, if you look at the Facebook or the you know the IPO, what it did, you look at Amazon, it's very easy to get very short-sighted. You know, this is a 26-mile marathon. I think we're only in mile one or two. >> Yeah, I hear you. I mean, and a lot of the the commentaries around that, but the the fact remains, it's just it's hard to value. And at the at its core, that that's one of the issues. Normally, you look at companies, and you can look at all the different metrics and come out with the price that you think it should be trading at, right? The valuation relative to its earnings. Um but this one's different. It's hard. >> Look, the companies like this, they're not going to have quote-unquote valuation support. And I think that's part of the problem. When you get into these, you know, it starts to have a cascade effect. But as we've talked about, whether it's SpaceX, whether it's, you know, Tesla, whether it's so many of the the the transformational tech stocks, you have to be able forest for the trees to look out the next 3 5 years. And when you about the fourth industrial revolution, where we are, it's hard to say that without SpaceX in the sentence. >> What what do you make of what continues to go on with chips and then what the mega caps are doing in terms of their trade today and over the past month? I mean, they've certainly woken up. >> Yeah. >> But chips remain really really hard to to figure out. >> it goes back to SK memory. Those are the golden childs of this AI trade. You've seen massive sell-offs since, you know, since really SK, you know, went public. But then on the other side of the market where Nvidia and so many these other chip names are, it comes down to Q2 earnings. I mean, that's really going to be the flash line in the dark tunnel. We've talked about it. 15 to one demand and supply. This AI revolution is still third inning, but the hyper scalers, those are the ones, the ones that are funding the AI party, funding the CapEx, those are actually the ones that are mostly in the penalty box. That's why it's so important for Alphabet, for Microsoft, for Amazons we go into what's really just I think a fork in the road earning season, but I continue to view it. The demand story is still early. >> I want to talk to you about a number of those names. Let's go Alphabet because it's so timely given what Warren Buffett said. He said this was my pick and he thinks they're going to be a winner. What do you make of that? >> Look, Buffett in his talk to us, I think valuation, you look at Alphabet a year ago, New York City cab driver was bearish on and now as it plays out in terms of what they're doing on search, what they're doing on cloud, some of the parts. For those like a Buffett or Berkshire looking for, okay, what are valuation names that you could rationalize in AI, you go back to SpaceX and some of the others maybe on the other side of the spectrum, this is a perfect example that fits well in and they are at the epicenter of the build out and especially when