Hedge fund manager Michael Burry initiates a bearish bet on SpaceX as its market cap surges to $2.8 trillion post-IPO.
Hedge fund manager Michael Burry has taken a short position on SpaceX (SPCX), the aerospace company valued at $2.8 trillion following its June 12 initial public offering. The stock debuted at $135 per share and has since risen roughly 50%, making Elon Musk the world’s first trillionaire.
SpaceX’s rapid ascent has drawn skepticism despite its record-breaking IPO, the largest in stock market history. Burry, known for his prescient 2008 housing market short, has historically profited from timing market declines, though short selling carries significant risk if the stock continues to rally.
The move underscores growing concerns about elevated valuations in high-growth sectors, particularly for companies with lofty market caps and unproven long-term profitability.