Scott Galloway called Space Exploration Technologies Corp. (NASDAQ:SPCX) “crazy overvalued,” valuing the stock at just “$10 to $30” per share, well below where it trades even after its steep decline from June’s peak.
SpaceX’s IPO ‘Financial Engineering’
Speaking on his podcast “The Prof G Pod” on Monday, the marketing professor said CEO Elon Musk will “go down as the greatest engineer of our time, but as a financial engineer,” citing SpaceX’s inclusion in the Nasdaq 100 despite being a fresh IPO, which forced index funds to buy shares, along with its unusually small 5% float at listing.
“I think this is a $10 to $30 stock,” Galloway said.
Wall Street Analysts Aren’t Nearly as Bearish
SpaceX stock hit a high of around $225 days after its IPO, then fell as much as 53% to roughly $104 before recovering some losses following its first earnings report as a public company and after several companies disclosed multi-billion-dollar stakes.
“It’s still crazy overvalued,” Galloway said, adding that the stock remained expensive even after retreating from its highs.
The company carries a consensus price target of $227.70 based on ratings from 31 analysts, with a high of $800 from Raymond James and a low of $115 from HSBC.
Galloway dismissed such targets, calling the $800 price target “creative writing” and said that anyone who believes it should “put down the mushroom chocolates.”
He added that analyst reports influenced by investment banking and wealth management fees make Wall Street research look worse than the conflicts of interest that led to Henry Blodget‘s 1999 prosecution.
Wall Street Remains Split On SpaceX’s Valuation
The Future Fund’s Gary Black said he won’t get “excited” until shares fall below $100, while former hedge fund manager Whitney Tilson called it “the most overvalued large-cap stock of all time.”
Bulls, including X Prize Foundation’s Executive Chairman Peter Diamandis and Gene Munster, have pushed back, with Diamandis calling SpaceX’s infrastructure “civilizational level” and projecting a $10 trillion valuation.
Price Action: The stock closed 1.98% lower on Tuesday at $143.34 and fell 0.73% in extended trading.
Benzinga edge rankings indicate SpaceX’s stock has a positive price trend in the short, medium, and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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