Legendary investor Grantham slams SpaceX: The market is chasing "the craziest investment story in history"

According to Odaily, renowned investor and GMO co-founder and chief investment strategist Jeremy Grantham said that in 50 years, the market may look back at the SpaceX IPO with "ridicule" and call it "the craziest IPO in human history."

Grantham believes that SpaceX's grand vision of "making humanity a multi-planetary species" and the current market's high enthusiasm for the company may be seen by future investors as excessive optimism. He said: "Everyone is lining up to tell you to buy into the craziest IPO in human history. In 50 years, people will quote paragraphs from the prospectus and then laugh about it."

After SpaceX joined the Nasdaq-100, it attracted significant institutional attention, but its stock price has recently been under 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 have differing views on SpaceX's future valuation. Morgan Stanley reportedly has a target price of $300, while Goldman Sachs analysts expect a target price of around $205. JPMorgan Chase believes that Elon Musk's goal of $1 trillion in revenue by 2031 is "theoretically achievable" but would require extremely strong execution.

Grantham also pointed out that one of SpaceX's biggest risks is its heavy reliance on Musk's personal leadership. He noted that Musk holds about 82% of the voting control, which is both a key driver of SpaceX's culture and innovative capabilities and a source of risk related to governance structure and leadership changes.

However, Grantham acknowledged that SpaceX's inclusion in the Nasdaq index could create additional buying pressure. He said that because a large amount of capital tracking the Nasdaq index is forced to allocate to SpaceX stock, market demand may exceed supply, thereby driving the stock price up.

Nevertheless, he believes that in the long term, SpaceX still faces enormous challenges. If the company's valuation logic ultimately holds, the future world could be drastically reshaped by developments in artificial intelligence and automation technology. But if it fails to meet expectations, this IPO will also become a landmark event in financial history. (Fortune)