Jeremy Grantham has a one-line test for a bubble: check the numbers, and “100 times sales pretty well does the job.” By that measure, SpaceX (NASDAQ:SPCX) is flashing red.
The GMO co-founder, who called the dot-com crash and the 2008 collapse, used this week’s Odd Lots podcast to take apart the largest IPO in history. He has warned that mega listings like SpaceX could break the S&P 500 from the inside, and he is not softening the message.
Why Grantham Calls The Prospectus A ‘Novel Slash Joke’
Grantham says this is the highest-priced market in history, give or take, and that SpaceX is its purest expression. Roughly 90% of the company’s value, as he reads the prospectus, rests on AI.
That is the part he finds absurd. SpaceX’s own AI, he said, seems to be “having its bottom kicked by 2 or 3 others,” yet investors “wouldn’t let facts get in the way of a really good story.”
