Economist Peter Schiff cites SpaceX’s 49% retreat from its high as a cautionary tale for overvalued AI-linked equities.
SpaceX shares closed at $115.26 on July 22, erasing all post-listing gains and falling 49% from their record high. The decline left the stock below the $135 price paid by institutional investors in June, according to market data.
The selloff mirrors past speculative bubbles, where early investors exit before late buyers realize losses. SpaceX’s trajectory is now being compared to other high-flying stocks tied to artificial intelligence, which have seen rapid price appreciation.
Peter Schiff, chief economist at Euro Pacific Asset Management, called the drop a “harbinger of things to come” for similarly hyped assets, suggesting the AI rally may face similar reversals if momentum fades.