Mark Yusko compares SpaceX’s $2 trillion valuation to Dogecoin, warns lockup expiry could trigger deeper selloff SpaceX has taken knocks from a few analysts since it announced plans for its IPO.
Now Mark Yusko of Morgan Creek Capital is adding to the pile-on as shares in the rocket/AI company continue to fall. “To me, SpaceX is the equivalent of Dogecoin,” Yusko, a Bitcoin bull, (1)said in an interview (1) with Cointelegraph. “Mark Cuban and Elon Musk own most of the coins
And then there’s this cult of people who own it and think it’s worth something, but it’s not worth anything. If Elon sold one Doge, Doge would go to zero.” Must Read Yusko, well known in the hedge fund market, said he believed the valuation of SpaceX (as well as those of Anthropic and OpenAI) relative to its power to generate earnings was “beyond silly.” With SpaceX’s $2 trillion valuation, he said, the company would have to achieve about half of the projected gross domestic product for the U.S. in 10 years, in order to justify a 10x return. “It’s a mathematical impossibility,” he said. Yusko’s comments come as SpaceX shares are currently trading below where they opened after the company’s IPO.
In the past five days, the stock has fallen more than 12% and it has lost (2)nearly 28% of its value (2) in the past month. Worse times coming? Yusko warned SpaceX shares are likely to continue selling off in the coming months, too. “I think, ultimately, as the lockup expires and the people try to sell, I think that goes down a lot,” he said. “Like, a lot, a lot.” Investors who feel they’re getting in on the ground floor of a company that will grow at rate comparable to Microsoft or Amazon, he added, are deluding themselves, since both of those internet giants had tiny market caps when they went public. ‘Kind of like’ Tesla Yusko compared the SpaceX IPO to what Elon Musk did with Tesla, saying he floated a small amount and built hype around it. “Then he engineered a big short squeeze and the price went up…