Peter Schiff "SpaceX Halved, A Sign of AI Bubble Collapse"

▲ SpaceX (SpaceX, SPCX), Artificial Intelligence (AI)/AI-generated image

Prominent economist Peter Schiff has pointed to SpaceX (SpaceX, SPCX)'s 52% drop from its peak as a sign of the AI bubble collapse.

According to the economic media outlet Benzinga on July 29 (local time), Schiff claimed via X (formerly Twitter) that the AI investment frenzy is rapidly cooling down. SpaceX shares have fallen more than 20% since its IPO. Compared to its all-time high of $225 per share, the decline reached 52%.

Schiff said, "SpaceX's IPO seems to have signaled the peak of the AI bubble." He added, "While AI technology is real, more froth needs to come out of overinflated AI-related stocks."

The simultaneous sharp decline of SpaceX and Tesla (Tesla, TSLA) also impacted the assets of CEO Elon Musk. Schiff stated that Musk lost $100 billion in a week. Musk's net worth, as tallied by the Bloomberg Billionaires Index, has dropped to approximately $724 billion.

Market research firm S3 Partners analyzed that SpaceX has become the stock that brought the second-highest profit to short-sellers. The profit reaped by short-sellers exceeded $7 billion. The scale of short-selling targeting SpaceX also surpassed $26 billion.

SpaceX shares fell 1.33% to $114.86 in after-hours trading on the 28th. Benzinga's stock valuation also showed negative short-term, medium-term, and long-term price trends.

[Article Key Summary]

-Peter Schiff claimed that SpaceX's IPO signaled the peak of the AI bubble.

-SpaceX fell more than 20% since its IPO, with a 52% drop from its all-time high.

-SpaceX short-sellers' profits exceeded $7 billion, and the volume of short positions surpassed $26 billion.

*Disclaimer: This article is for investment reference only and does not take responsibility for investment losses based on it. The content should be interpreted for informational purposes only.*