SpaceX (SPCX), IPO Price Plummets 45% in 60 Days...Gary Black "My Warning Was Right"

▲ SpaceX (SPCX), Starlink/AI-generated image

Gary Black, an investor at The Future Fund LLC, reconfirmed his cautious stance on SpaceX (SPCX). He argues that the stock's 45% plunge in 60 days after soaring from an IPO price of $135 to $200 supports concerns about an excessive valuation.

According to Benzinga, a financial market specialized media outlet, on August 7 (local time), Black refuted the bullish view on X (formerly Twitter) that the market would properly value SpaceX after the lock-up period ends and time passes. Black stated that he was “right to take a cautious stance” on SpaceX, considering its enterprise value. He further pointed out the stock's volatility, saying, “It listed at $135, rose to $200, and then fell 45% in 60 days.”

Black criticized that it is difficult to justify SpaceX's enterprise value solely based on the long-term blueprint presented by CEO Elon Musk. He said, “What passes for research on X are just Elon’s grand claims that things could happen by 2030, without analysis or factual basis.” He also emphasized that a one-day surge in SpaceX stock price does not serve as “proof” that his investment judgment was wrong. SpaceX did not receive a positive evaluation for short-term, medium-term, or long-term price trends in Benzinga's stock valuation indicators.

On the other hand, voices also emerged that highly value SpaceX's long-term growth potential. Peter Diamandis of the X Prize Foundation assessed that Musk is building “civilization-level infrastructure” through SpaceX. He explained that it is difficult for the market to value SpaceX because multiple businesses are combined into one company.

Gene Munster of Deepwater Asset Management also took a bullish stance on SpaceX. Munster predicted that the computing contract between Alphabet (GOOGL·GOOG) and Anthropic would not be canceled during the 90-day termination period. Musk also highlighted the Terafab semiconductor manufacturing facility being built in Texas. He stated that the first phase of the project would create 3,000 jobs and supply semiconductors to both Tesla (TSLA) and SpaceX.

[Article Summary]

-Gary Black reconfirmed his existing cautious view, citing SpaceX's 45% drop in 60 days after rising from $135 to $200.

-Black pointed out that it is difficult to justify SpaceX's enterprise value solely based on Musk's long-term vision for 2030.

-Peter Diamandis and Gene Munster maintained a bullish stance based on SpaceX's infrastructure business and computing contract.

*Disclaimer: This article is for investment reference only, and we are not responsible for investment losses based on it. The content should be interpreted for informational purposes only.*