No. of Recommendations: 1
I might go even a bit further. The rocketry business by itself is not particularly profitable at the moment, but if there IS an orbital lift business in future, they own it. Their lead in cost to orbit, current and future, currently seems untouchable.
I don't really see how that could possibly justify the stock's valuation levels, but in future it could easily be their largest profit centre. A moat filled with vacuum is even better than a moat filled with shark infested water.Should even a small fraction of the datacentre plans come off, it is more a moat filled with decaying junk that will eventually pose a hazard to itself and to everyone else with LEO satellites. I don't see this as a business model that Berkshire, at least, would step up to insure.
But there are lots of reusable booster vehicle companies working away. Some in China where there is no willingness to commit themselves to Former US-controlled infrastructure, others in Europe where there's a steadily growing realization that they need to control their own tech and defence destiny. They're at most a decade behind.
Interesting article here on the underlying economics and engineering of "datacentres in space". Closing line: "I did not invest in the IPO.":
https://tauzero.com/Rob_Tow/essays/the-cloud-is-no...
