No, Thanks: Why Star Investor Michael Burry Isn't Buying SpaceX Stocks
Star investor Michael Burry has provided insight into his portfolio and revealed that he has not invested in SpaceX stocks. Discover why he made this decision, unlike many other investors.
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Star investor Michael Burry has given insight into his portfolio and revealed that he has not invested in SpaceX stocks. Why did he make this decision, unlike many other investors?
!["No, thanks": Why Star Investor Michael Burry Isn't Buying SpaceX Stocks]({{img:6801}} ""No, thanks": Why Star Investor Michael Burry Isn't Buying SpaceX Stocks")
SpaceX has successfully gone public. And that's not all. The IPO of the aerospace company is the largest in history, making CEO Elon Musk the first billionaire in the world. Many investors had wondered beforehand whether an investment was truly worthwhile. Now, star investor Michael Burry reveals what decision he made.
Michael Burry Steers Clear of SpaceX
As reported by Business Insider, the "Big Short" investor wrote on his Substack: "I am currently not involved with SpaceX." Burry emphasizes that it wasn't just about buying stocks. He had also been presented with several options to bet against SpaceX, which he also declined with a "No, thanks" and continues to observe the situation from a distance.
Burry also provided an explanation: "Nothing in the S-1 indicates that this company is worth a trillion US dollars, let alone two trillion. With a market value of 2.8 TRILLION dollars, SpaceX, which is essentially a small aerospace company, a niche telecommunications company, a demonized social media firm, and a small version of Coreweave, has only generated revenues of 20 billion dollars."
The investor added: "The market value of SpaceX could buy Page, Brin, Bezos, Zuckerberg, Ellison, Arnault, Buffett, and Ortega and would still have a trillion dollars left over." These are the nine wealthiest people on the planet behind SpaceX CEO Elon Musk. Burry further noted: "Berkshire Hathaway was surpassed two and a half times, and that in just a little over three days. […] The two greatest investors of all time."
Not many investors seem to share Burry's assessment. On the first day that stock options were available, a total of 1.6 million options purchases were completed. This surpasses another record for SpaceX. The record for the most options purchases was previously held by Facebook since its IPO in 2012.
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