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Wall Street Is Pumping SpaceX — So Why Is It Falling?

Prof G Markets

Shownote

Patrick Boyle, professor at King’s College London and portfolio manager, fills in for Scott. He and Ed discuss how SpaceX’s stock has traded over the past couple weeks. They break down the price targets that analysts have issued and explain why they’re concerned about potential conflicts of interest in equity research. Then, they discuss why crypto bros don’t find crypto exciting anymore and have moved onto AI. Finally, they explore why the housing market is showing new signs of strain and what it would take to get home prices back to a reasonable place.  Patrick Boyle is a professor at King’s College London and a portfolio manager with more than 20 years of experience at hedge funds, investment banks and private wealth management firms. He’s also the author of several books on finance and hosts the podcast, Patrick Boyle On Finance. Subscribe to the Prof G Markets Youtube Channel [https://www.youtube.com/@profgmarkets]  Subscribe to the Prof G Markets newsletter [https://www.profgmarkets.com/subscribe]  Order "Notes on Being a Man [https://amzn.to/4nl4VKo]," out now Note: We may earn revenue from some of the links we provide. Follow the podcast across socials @profgmarkets Follow Scott on Instagram [https://www.instagram.com/profgalloway/?hl=en] Follow Ed on Instagram [https://www.instagram.com/ed_elson_/], X [https://x.com/edels0n?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor] and Substack [https://substack.com/@edwardelson] Send us your questions or comments by emailing Markets@profgmedia.com [Markets@profgmedia.com] Learn more about your ad choices. Visit podcastchoices.com/adchoices [https://podcastchoices.com/adchoices]

Highlights

In this episode, guest host Patrick Boyle joins Ed to dissect three major market trends: the surprising decline of SpaceX's stock despite positive news, the shift of crypto investors towards AI, and the persistent strain in the housing market. They delve into the valuations, market psychology, and structural issues driving these stories.
03:02
SpaceX stock declined despite positive news.
15:10
Valuation relies on calling it an AI company
24:37
The SEC terminated this rule seven months ago, warning it could make analysts corrupt again.
46:32
Financial nihilism drives risky investing behavior
55:52
Housing prices keep rising due to land value and investment demand

Chapters

Why is SpaceX stock falling despite all the good news?
00:00
Are analysts' price targets for SpaceX just a conflict of interest?
06:06
The great rotation: Why crypto bros are now chasing AI.
18:17
The rise of 'financial nihilism' and risky trading behavior.
34:29
Why the housing market is frozen and what it would take to fix it.
49:50

Transcript

Patrick Boyle: Monday.com AI agents took over my work. And I absolutely love it. Chasing deadlines, writing status reports, updating stakeholders. Agents handle the daily grind now. I stay in the loop only when it matters. Create your own AI agent in minut...