SOURCES: Stripe & SpaceX Are Buying Back Their Own Shares
Sources tell me that financial payments startup Stripe and the satellite and rocket ship company SpaceX have been buying back their own shares. That’s common enough among public companies with a liquid market for their shares and the belief that investors are undervaluing the stock. But it’s quite unusual for private startups, which don’t generally have the cash to spare. Stripe has at times interceded on secondary transactions and invoked its right of first refusal to buy its shares with its corporate balance sheet. Those buybacks help to fight the dilution created by multiple funding rounds over the years, and create more upward pressure on the value of its stock. Similarly, SpaceX has been buying up some of its own shares. “It’s kind of a flex,” one investor observed. “We’d rather own more of our company that let others buy those shares.” There’s one key shared explanation: sources tell me that both companies are cashflow positive. Stripe burned through $550 million in cash in 2022.
Elon Musk | (Photo by Antonio Masiello/Getty Images) Private companies behave more and more like public companies every day. Sources tell me that financial payments startup Stripe and the satellite and rocket ship company SpaceX have been buying back their own shares. That’s common enough among public companies with a liquid market for their shares and the belief that investors are undervaluing the stock. But it’s quite unusual for private startups, which don’t generally have the cash to spare. Stripe has at times interceded on secondary transactions and invoked its right of first…
related reading
- Stratechery by Ben Thompson – On the business, strategy, and impact of technology.stratechery.com
- SpaceX revenue, valuation & funding | Sacrasacra.com
- Stripe Can’t Loseevery.to
- Elon Musk’s Shadow Rule | The New Yorkernewyorker.com
- Stripe, A Modern Product Rocket 🚀 - Product Growth Deep Diveaakashg.com
- Cursor and SpaceX: In search of a complete loop - kwokchainkwokchain.com
- Spending Like a Hyperscalertomtunguz.com
- kwokchain -kwokchain.com
- You Probably Don’t Get Why Stripe Bought OpenRouter — Research — AMP PBCamppublic.com
- Schwab moves giant step closer to taking proprietary private-market investments mainstream, today, by closing Forge deal; experts caution spending $660 million was the easy part | RIABizriabiz.com
- Musings on Marketsaswathdamodaran.blogspot.com
- APIs All the Way Down - Not Boring by Packy McCormicknotboring.co