Steve Eisman, the investor who famously made a prescient bet against subprime mortgages before the 2008 financial crisis, says he wants no part of SpaceX’s upcoming IPO — and the company’s own prospectus is his primary exhibit.
Eisman, host of the podcast “The Real Eisman Playbook” and a former portfolio manager for Neuberger Berman, told CNBC’s “Squawk Box” on Monday that It simply is “I’m not a fan” of the offer, which is expected to go on sale Friday.
According to Isman:
“Let’s see. If you read the prospectus, I mean there’s some fun stuff in the prospectus. My favorite part of the prospectus is that one of the things SpaceX wants to do is mine asteroids. I thought that was kind of funny.”
His most important interest is the company’s shift toward artificial intelligence. Eisman noted that capital expenditures as a share of revenue jumped from 42% in fiscal year 2023 to 215% in the latest first quarter, driven by spending on AI infrastructure. He called Grok, SpaceX’s AI producer, “not a world-class AI company” and warned that large-scale AI production is “too commoditized” with no “moats.”
Eisman pointed to SpaceX S-1’s total addressable market figure of $28.5 trillion, with 85% AI, noting that “the entire company is betting on AI for its future, not on SpaceX and not on Starlink.”
According to Isman:
“What I love about the S-1 is that it’s like a science fiction novel. It really is.”
He explained that he had no interest in selling the stock. “I have no interest in selling that amount. I’m not playing,” he said.
Eisman previously bet against Tesla before abandoning the short position in 2020. “If you’re short, you should pull out. There’s no glory in losing money,” he said at the time.
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