legendary investor Grantham slams SpaceX: Market is chasing "the most insane investment story in history"

Odaily星球日报讯 Jeremy Grantham, renowned investor, co-founder, and chief investment strategist of GMO, stated that the market may look back on SpaceX's listing with "ridicule" 50 years from now, calling it "the most insane IPO in human history."

Grantham believes that SpaceX's grand vision of "making humanity a multi-planetary species" and the market's current high enthusiasm for the company may be viewed by future investors as excessive optimism. He said, "Everyone is in line telling you to buy the most insane IPO in human history. 50 years from now, people will quote paragraphs from the prospectus and then laugh at it."

After SpaceX was included in the Nasdaq-100, it garnered significant institutional attention, but its stock price has recently faced pressure. Currently, SpaceX's stock price is down about 7% from its one-month high, hovering around $150, only slightly above its IPO target price of $135.

Wall Street institutions are divided on SpaceX's future valuation. Morgan Stanley reportedly has a target price of $300, while Goldman Sachs analysts estimate a target price of around $205. JPMorgan Chase believes that Elon Musk's goal of achieving $1 trillion in revenue by 2031 is "theoretically achievable," but would require extremely strong execution capabilities.

Grantham also pointed out that one of SpaceX's biggest risks lies in the company's heavy reliance on Musk's personal leadership. He believes that Musk holds approximately 82% of the voting control, which is both a key driver of SpaceX's culture and innovation capability, but also introduces risks related to governance structure and leadership changes.

However, Grantham acknowledged that SpaceX's inclusion in the Nasdaq index could add buying pressure. He noted that since a large amount of capital tracking the Nasdaq index would be forced to allocate to SpaceX stock, market demand may exceed supply, thereby pushing the stock price up.

Nevertheless, he believes that in the long run, SpaceX still faces enormous challenges. If the company's valuation logic ultimately holds, the future world may undergo drastic changes due to the development of AI and automation technology; but if it fails to live up to expectations, this IPO will become a landmark event in financial history. (Fortune)