Investor Gary Black on Wednesday highlighted veteran investor Jeremy Grantham‘s warning that Elon Musk-led Space Exploration Technologies Corp (NASDAQ:SPCX) is the “craziest IPO in the history of man” after the company officially joined the Nasdaq 100, adding that he holds no position in the stock.
Black Shares Grantham’s Bear Case
In a post on X, Black shared Bloomberg AI’s summary of a Fortune article, which said Grantham was “unimpressed” by SpaceX’s goal to “build the systems and technologies necessary to make life multiplanetary” and believed “history will end up laughing at SpaceX”, even as Wall Street remained broadly bullish.
“In 50 years, they’ll be telling and writing stories about SpaceX, and they’ll be quoting you paragraphs from the prospectus, and you will be laughing at it,” Grantham said.
Grantham also questioned Wall Street’s bullish recommendations, saying the company’s valuation would require “massive developments on AI” and a world that looks “totally different” from today to be justified.
Shares of SpaceX are down 7.88% since its historic IPO in June.
Black Says He Owns No SpaceX
In response to an X user’s question about whether Black holds any SpaceX shares, he revealed that he does not.
“I have no position in $SPCX, which given the bullishness on this board and its 1.3% benchmark weight, would suggest I am bearish,” Black said.
Black has repeatedly questioned SpaceX’s valuation since its IPO. In June, he said investors “shouldn’t be paying 150x 2026 EV/EBITDA” for the aerospace company, comparing it with NVIDIA Corp‘s (NASDAQ:NVDA) far lower valuation multiple despite the chipmaker’s AI-driven growth.
Wall Street Sees AI, Starlink Driving SpaceX to $300
JPMorgan on Tuesday said SpaceX could grow revenue at a 91% annual rate through 2030, projecting a shift from “connectivity to AI” as Starship enables orbital compute infrastructure and large-scale deployment of next-generation satellites.
The bank assigned a $225 price target, saying the company’s launch business is the foundation for a much larger AI opportunity.
Morgan Stanley was even more bullish, assigning a $300 bull-case price target with analyst Adam Jonas saying investors are underestimating SpaceX’s terrestrial AI business today and its long-term potential in space-based AI computing.
Price Action: Shares of SpaceX fell 0.78% on Wednesday at $148.30 and rose 0.39% in extended trading.
Benzinga edge rankings indicate SPCX has a negative price trend across the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Samuel Boivin on Shutterstock.com
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