Ca$htag$: Starlink Google Searches Back SPCX Demand as Company Disrupts Legacy Giants

SPEAKER_1 (0:00)

And it's time for Cash Tags. And for that, let's bring in Landon Swan, co-founder of LikeFolio. And we're looking at some specifics. The data, what's on your mind when it comes to SpaceX? What are you finding with LikeFolio?

Landon Swan (0:14)

Yeah, hey, thanks for having me on. This is, I think, going to be the company of the decade. I mean, the IPO obviously was really big, and everyone's got an opinion, bullish, bearish. But when you look at what they're doing, I mean, you love them or misunderstand them, I think that Elon Musk is the greatest entrepreneur the world has ever seen. And he has set his sights on some incredible goals with SpaceX. And he's talking about bringing internet to everyone, bringing phone service to everyone, and doing so with probably the best moat in the history of businesses, right? I mean, you're talking about, you can't compete if you don't have a satellite in the sky. And he's built a business that puts satellites in the sky faster, cheaper, more reusable than anyone else. So I think that this is a company that everyone should be seriously considering investing in. The data that we've got just on the Starlink side of things is unbelievable. The demand is up 126% on a year over year basis.

And I think this next point is really the key. We look at, at LikeFolio, we look at when people talk about switching from one service to another.

And, you know, just to give you an idea, if you're talking about like phone carriers, AT&T to Verizon or something like that, you know, those are always 50-50, people switching in or switching out. If you're talking about people switching to Starlink from another service carrier, it's an 89% rate, 8 to 1, where people are talking about switching to Starlink from someone else. That's the highest we've ever seen on LikeFolio. This is, that's the mark of a dominant service in an industry. So that's sort of a game changer, I think, that we can be very confident about. And then, of course, you know, you've got, obviously you've got the AI, which is very concerning on the CapEx level.

That's the one that's eating up all the money. But, you know, they're putting, they're investing a lot of money into it and they're doing so with, again, the idea of a huge moat in the future. It's a little bit farther away when you look at how much cash they have. We'll talk about that. The run rate doesn't get there. But you're talking about, you know, free energy, basically solar panels that pull in about eight times the power of solar panels on Earth.

You debate the physics, but, you know, a lot of people believe it's free cooling up there. And so they're going to have a huge advantage in the future when it comes to that. You know, they just acquired the Spectrum service, so that they're going to actually be able to compete with voice. So you guys are just talking about providers. They're AT&T, you know, T-Mobile, Verizon. If you're an investor in those, you've got to be concerned.

And you can kind of see here what the, just the search engine growth has been around on this chart here, has been around Starlink. I mean, it is growing at huge numbers. Everyone's starting to figure out that it's, it's the best service when it comes to the internet. I personally still haven't got there yet, which is crazy. Andy has, I need to, you know, you know, hook into that. But when you look at just what people are talking about on the airlines, it's unbelievable. There are studies that show the consistency of, of high speed on, on airlines and you know, the average is around like 30% on each airline. The top airlines are in the 90s and they all have Starlink. And the two holdouts, JetBlue and Delta are 2 and 4% respectively. So they have abysmal Wi-Fi and they're sort of refusing to come on board with SpaceX and Starlink. So they're basically what I'm saying is SpaceX is doing everything that Tesla did 15 or 20 years ago. And the same kind of bears are saying it can't work. They're going to run out of money. It's all the same story again. And if you just want to rewind and look at what Tesla did, I think that's what you're going to see what SpaceX is going to do. Again, I think this is led by someone who absolutely understands how to completely change the game in whatever industry he's attacking. And right now, he's attacking, well, he's creating satellite services, but he's creating rocket launches as a moat. But then he's attacking internet speed. He's attacking phone carriers. And then he's going to be attacking AI as well. So this is, I think, a great opportunity to own maybe the best company in the world 10 years from now. So if you can't tell, we're bullish on the data side and then I'm personally bullish just based on all the anecdotes that I listed as well.