Burry’s SpaceX Short Pass Isn’t a Bull Sign — It’s Proof the IPO Valuation Hype Is Completely Unmoored

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(SeaPRwire) –

By: Oliver Hawthorne

Michael Burry, the investor who predicted the 2008 housing crash, looked at shorting SpaceX and walked away. This is not a vote of confidence for the newly public stock. It’s a sign the market has priced in so much froth even bearish bets don’t make financial sense. Retail investors are piling in on hype without realizing the risk they’re taking on.

SpaceX launched its IPO on June 12, trading under ticker SPCX.
SPCX Stock Card
Shares jumped 20% on the first full trading day, and are up 25% total to date, trading around $212. The IPO made Elon Musk the world’s first trillionaire, and the company now holds a nearly $3 trillion market cap. Burry noted that figure is 2.5 times the size of Warren Buffett’s Berkshire Hathaway, built over decades. He called SpaceX a small space company pulling in less than $20 billion in annual revenue. Put options for bearish bets are pricey: a December 2028 $100 strike costs $25 per contract, while a December 2026 put runs $6.75. The average analyst price target sits at $160, implying 20% downside from current trading levels.

Burry holds no long or short position in SpaceX right now, just watching from the sidelines. He expects the stock will settle in the mid-$200s in the near term, as excess volatility priced into options drains away. The massive gap between the company’s actual revenue and its $3 trillion market cap won’t hold indefinitely. Anyone buying in at current levels betting on further exponential gains is taking on reckless, unpriced risk.

Author bio: Oliver Hawthorne, Principal Correspondent permanently stationed at an international technology review, covering tech IPOs and public market valuation trends.