Aswath Damodaran says SpaceX $135 IPO overpriced, favors $100
SpaceX is gearing up for its initial public offering, or IPO, but veteran valuation expert Aswath Damodaran thinks the $135 share price is a bit much.
After digging into SpaceX's prospectus, which values the company at $1.8 trillion, he suggests shares should be closer to $100.
Damodaran warns that investors might be paying more than what's fair.
Damodaran flags losses and leadership risks
Damodaran points out that SpaceX has big growth potential, but it's still losing money and burning cash.
He also flags risks tied to Elon Musk's leadership and notes some real challenges in actually delivering on those ambitious plans.
While SpaceX's rocket launches and Starlink internet are strong performers, he's less optimistic about their AI business due to tough competition and high costs.
His advice? Don't get swept up in the hype: past IPOs like Meta and Uber saw prices drop after launch, so tread carefully if you're thinking about investing.