The SpaceX IPO Marks "the Top of a Terrific Bubble," According to This Famous Wall Street Veteran

Yahoo Finance ·

Jeremy Grantham, co-founder of GMO LLC -- an asset manager with around $70 billion in assets under management -- is sounding the alarm on Space Exploration Technologies ( SPCX +2.83% ) stock, as well as stock market valuations across the board. Grantham, who has called many previous market events , including the dot-com bubble and the 2008-09 financial crisis, was recently interviewed on Steven Bartlett's "The Diary of a CEO" podcast and asked whether he thinks SpaceX will succeed. His answer was clear. "I think it will fail to deliver anything like its promises in the prospectus," he stressed. "Yes, absolutely." But Grantham isn't just bearish on SpaceX stock. He went on to say, "SpaceX is such a fabulous BS story. Mining asteroids. Huge, incredible success of AI ... It's the classic description of a market peak. It's what you look for at the top of a terrific bubble." Perhaps surprisingly, Grantham is a fan of one of SpaceX's core businesses. But it's clear why he's bearish on the stock in general.

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