Steve Eisman, the businessman who became famous for his bets against subprime mortgages before the 2008 financial crisis, says he doesn’t want a part of the upcoming SpaceX IPO – and the company’s prospects are his biggest show.
Eisman, host of “The Real Eisman Playbook” podcast and former managing director of Neuberger Berman, told CNBC’s “Squawk Box” on Monday that he it’s easy “not a fan” of the offering, which is expected to be priced as soon as Friday.
According to Eisman:
“Let’s see. If you read what’s coming up, I mean, there’s some funny stuff going on.” Like my favorite part of the prospectus is that one of the things SpaceX wants to do is asteroid mining. I thought it was funny. “
His biggest concern is the company’s investment in AI. Eisman noted that capex as a share of revenue jumped from 42% in 2023 to 215% in the most recent quarter, driven by the use of AI infrastructure. He called Grok, SpaceX’s AI product, “not the best AI company in the world” and warned that AI output is “very profitable” without “moat”.
Eisman also mentioned SpaceX S-1’s potential market cap of $28.5 trillion, where 85% was created by AI, saying that “the whole company is betting on AI in terms of its future, not on SpaceX and not on Starlink.”
According to Eisman:
“What I love about S-1 is that it reads like a science fiction novel. It really does.”
He explained that he has no interest in shorting the stock. “I don’t want to shorten this, I don’t play,” he said.
Eisman previously bet on Tesla before retiring from a short position in 2020. “If you’re short, you should get out. There’s no glory in losing money,” he said at the time.
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