Submitted by QTR's Fringe FinanceLast week, I argued that the forthcoming SpaceX IPO may be one of the most important sentiment gauges of the current market cycle. Personally, I view this IPO as a meaningful signal on the remaining life of the current AI-fueled bull market. Ergo, I think it deserves to be watched closely.My view remains simple: SpaceX has become much more than a traditional public offering. It now sits at the intersection of nearly every theme that has driven this bull market: artificial intelligence, founder worship, hyperscale infrastructure spending, private-market exuberance, and investors’ willingness to pay extraordinary multiples for distant future possibilities.That is why every development surrounding this deal matters. And this week, investors received another noteworthy signal.According to Reuters, Morningstar analysts have assigned SpaceX a valuation of approximately $780 billion, less than half of the company’s reported $1.75 trillion IPO target valuation. Reuters reported that Morningstar views the company as “significantly overvalued” and believes investors may have opportunities to purchase shares at substantially lower prices after the offering.The report stands out because it represents one of the first major Wall Street research firms willing to publicly challenge the valuation narrative surrounding the offering.Morningstar equity analyst Nicolas Owens was particularly skeptical of the assumptions embedded in SpaceX’s artificial intelligence ambitions.“We don’t see Grok as one of the leading AI labs today,” Owens told Reuters, referring to xAI’s chatbot. He also warned that portions of the company’s future AI strategy depend on...(READ THIS FULL ARTICLE HERE). Contributor posts published on Zero Hedge do not necessarily represent the views and opinions of Zero Hedge, and are not selected, edited or screened by Zero Hedge editors.Loading...