Renowned investor George Noble has criticized Space Exploration Technologies (NASDAQ: SPCX), claiming its recent IPO is designed to “separate retail investors from their money.” Noble estimates its fair value at approximately $30, suggesting an 80% downside from current levels. He describes recent stock increases as a “manufactured squeeze” due to the company releasing less than 5% of its shares and being prematurely included in the Nasdaq-100 index.
Noble highlights SpaceX’s Starlink as the only profitable venture within the company, although he believes its market value is overinflated at nearly $2 trillion. He emphasizes that while Starlink has potential for internet service provision, it faces significant technical and regulatory challenges. Moreover, Noble remarks that the broader ambitions of SpaceX, such as asteroid mining and building data centers in space, lack feasibility in the near term due to unresolved technological and infrastructural issues.
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