Just weeks after its initial public offering, ******* e Exploration Technologies (NASDAQ: SPCX), aka ******* eX, announced a major acquisition. The Elon Musk-founded ******* e exploration and artificial intelligence (AI) company announced a further pivot toward the latter trend with its plans to acquire Anysphere, the developer of AI coding platform Cursor, in a $60 billion all-stock deal.
So far, this announcement has had a limited impact on ******* eX's stock performance. Shares were pulling back around the announcement and just after, but have started to bounce back of late. Let's take a closer look and see what a deal could mean for ******* eX, which is arguably as much an AI stock as it is a ******* e stock.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
After exercising an option back in April, before it went public, ******* eX became obligated either to acquire Anysphere for $60 billion or else pay it a $1.5 billion termination fee and provide it with $8.5 billion in computing resources.
But while ******* eX may have been more or less "obligated" to buy Cursor, the price tag may be far more reasonable than it appears at first glance. Given the rich valuation of ******* eX stock, even after its pullback, financing this as an all-stock deal costs existing investors fairly little in terms of dilution. Even if ******* eX prices the Cursor acquisition at its current stock price of around $164 per share, rather than the $200 per share or more it was trading at last month, that would mean a 365.9 million increase in the share count.
So far, this announcement has had a limited impact on ******* eX's stock performance. Shares were pulling back around the announcement and just after, but have started to bounce back of late. Let's take a closer look and see what a deal could mean for ******* eX, which is arguably as much an AI stock as it is a ******* e stock.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
After exercising an option back in April, before it went public, ******* eX became obligated either to acquire Anysphere for $60 billion or else pay it a $1.5 billion termination fee and provide it with $8.5 billion in computing resources.
But while ******* eX may have been more or less "obligated" to buy Cursor, the price tag may be far more reasonable than it appears at first glance. Given the rich valuation of ******* eX stock, even after its pullback, financing this as an all-stock deal costs existing investors fairly little in terms of dilution. Even if ******* eX prices the Cursor acquisition at its current stock price of around $164 per share, rather than the $200 per share or more it was trading at last month, that would mean a 365.9 million increase in the share count.
2 months ago
