Jeremy Grantham, co-founder of the investment behemoth GMO, has cast doubt over the future success of Space Exploration Technologies Corp (NASDAQ:SPCX).
Grantham predicts that the SpaceX IPO could potentially become a future joke, despite the high expectations surrounding it. He shared his concerns on Morningstar’s The Long View podcast on Wednesday and questioned the ambitious goals set by SpaceX in its prospectus, including its aim to extend human consciousness to the stars.
"In 50 years, they’ll be telling and writing stories about SpaceX, and they’ll be quoting you paragraphs from the prospectus, and you will be laughing at it."
The investor also discussed the impact of fast-tracking large IPOs, stating that it has directly affected SpaceX’s performance. He explained that this could lead to a surge in demand, potentially driving up the price significantly.
"In the end, the reality will come out, and this will turn out to be, of course, one of the landmark historical events…It will be amazing, by the way, if it doesn’t collapse, because it will need such massive developments on AI that our entire lives are totally different."
