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Economist and Echelon Wealth Partners co-founder Peter Schiff thinks that the artificial intelligence-induced bubble in the U.S. has popped amid Elon Musk-led Space Exploration Technologies Corp.‘s SPCX recent stock decline.
SPCX 46% Below Its High
In a post on X on Monday, the investor shared his take on AI stocks’ decline and the emergence of Chinese competitors. “More air is coming out of the AI bubble as Moonshot AI’s Kimi K3 intensifies low-cost Chinese competition,” Schiff said in the post.
The investor then outlined SpaceX’s recent decline, saying that the commercial space flight giant’s stock was trading at $121/share when he made the post, which was “almost 11% below its IPO price and more than 46% below its high.” Schiff then said that AI was not a bubble, but “AI stocks” were. “The bubble has likely already popped,” the investor said.
In the same thread, Schiff commented on SPCX declining further. “SpaceX closed under $120, near the low of the day,” he said, which was more than 11% below the IPO price of $135/share, according to the investor. “The chart is not looking good,” Schiff said.
Bearish Outlooks on SpaceX
Investor Gary Black of The Future Fund LLC said that the company’s market capitalization of approximately $1.7 trillion should not “mathematically” result in an enterprise value-to-revenue multiple of about 40 times. The investor had also previously said that SPCX would not excite him until it fell below $100/share.
Whitney Tilson, a former hedge fund manager, expressed bearish sentiments on the company’s stock, saying that SpaceX was still trading “at 92 times trailing revenues,” which was “nearly 10 times overvalued,” he said in a newsletter.
According to Benzinga Edge Rankings, SpaceX fails to provide a favorable price trend in the Short, Medium and Long term.
Price Action: SpaceX shares were up 0.38% at $120.30 during the after-hours trading on Monday.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
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This article Peter Schiff Says AI Stock Bubble Has Popped Amid SPCX's Decline: 'The Chart Is Not Looking Good' originally appeared on Benzinga.com.
