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Einhorn warns SpaceX IPO valuation could mark a speculative top
SpaceX priced its IPO on June 12 at $135 per share, raising about $75 billion, and early results showed $7.8 billion in revenue alongside a $541 million net loss.
David Einhorn’s Greenlight Capital said the IPO valuation for Space Exploration Technologies Corp., ticker SPCX, may be close to a speculative peak. In its view, the $1.75 trillion valuation implies investors are paying venture style prices for a company with negative free cash flow and large capital needs ahead.
The debate centers on the early IPO setup and the company’s initial financial profile. SpaceX went public on June 12 at $135 per share and raised about $75 billion before the underwriters’ option, with its first public quarterly results showing $7.8 billion of revenue, a $541 million net loss, and about $18.4 billion of capital spending as it builds rockets, Starlink, and AI infrastructure, Yahoo Finance reported.
A key friction point is that a lockup release increased the supply of tradable shares, which can make it harder to distinguish fundamental skepticism from the mechanical pressure that often follows a mega IPO. Einhorn also questioned the optimism embedded in long range revenue forecasts and the fact that a relatively small portion of the company was put into public hands.
By contrast, Morgan Stanley’s Adam Jonas argued that the post IPO decline has created what he called a unique opportunity and set a $300 price target, implying more than 100% upside from the price used in the firm’s analysis. Jonas’s bull case ties spending and scale across launch, connectivity, and enterprise AI to a larger valuation, including a planned $100 billion Starbase facility in Louisiana and projections through fiscal 2028.