Steve Eisman, the investor known for his bet against subprime mortgages ahead of the 2008 financial crisis, told CNBC's "Squawk Box" Monday that he is "not a fan" of the upcoming SpaceX IPO. Eisman, host of "The Real Eisman Playbook" podcast and former Neuberger Berman senior portfolio manager, cited the company's S-1 prospectus as his primary concern, pointing to mentions of asteroid mining and a significant pivot into AI infrastructure. SpaceX's IPO is expected to price as soon as Friday, though Eisman clarified he has no interest in shorting the stock.
Eisman Cites SpaceX S-1 Prospectus Concerns
Eisman told CNBC that the SpaceX prospectus contains "some amusing stuff," including the company's stated interest in asteroid mining. "Like my favorite part of the prospectus is that one of the things that SpaceX wants to do is asteroid mining. I thought that was kind of funny," Eisman said.
His more substantive concern centers on SpaceX's AI spending. Eisman noted that capital expenditures as a share of revenue jumped from 42% in fiscal year 2023 to 215% in the most recent first quarter, driven by AI infrastructure spending. He called Grok, SpaceX's AI product, "not a world class AI company" and warned that AI output broadly is "very commoditized" with "no moats."
Eisman pointed to the SpaceX S-1's total addressable market figure of $28.5 trillion, with 85% attributed to AI. He stated that "the entire company is being bet on AI in terms of its future, not on SpaceX and not on Starlink." Eisman added: "What I love about the S-1 is that it reads like a science fiction novel. It really does."
Eisman clarified he has no plans to short SpaceX stock. "I have no interest in shorting this. I'm just not playing," he said. Eisman previously bet against Tesla before abandoning the short position in 2020. "If you are short, you've got to walk away. There's no glory in losing money," he said at the time.
SpaceX IPO Expected to Price as Soon as Friday
The SpaceX IPO is expected to price as soon as Friday, according to the report.
FAQ
What did Steve Eisman say about the SpaceX IPO?
Steve Eisman told CNBC's "Squawk Box" Monday that he is "not a fan" of the upcoming SpaceX IPO. He cited concerns about the company's S-1 prospectus, including mentions of asteroid mining and a significant pivot into AI infrastructure, with capital expenditures jumping from 42% of revenue in fiscal year 2023 to 215% in the most recent first quarter.
When is the SpaceX IPO expected to price?
The SpaceX IPO is expected to price as soon as Friday, according to the report.
