Billionaire David Einhorn Says SpaceX Is Making History, but Not in a Good Way
SpaceX will need substantial capital to pursue its various business ventures.
Overview
In David Einhorn's most recent letter to shareholders of his hedge fund, Greenlight Capital, he specifically called out Space Exploration Technologies (NASDAQ: SPCX), which went public last quarter.
The initial public offering (IPO) was historic for its size, and Einhorn notes that SpaceX is still making history, citing key analyst reports that have a massive impact on financial markets. But that history isn't necessarily a good thing for SpaceX investors, and it could have broader implications for the market in general.
Details
Einhorn didn't pull any punches when it came to his thoughts on SpaceX's valuation. He believes the $1.75 trillion that the IPO underwriters assigned to SpaceX is far too much. He failed to grasp the extraordinarily high level of confidence investors have in the company's long-term prospects, despite the significant hurdles it must overcome to realize its potential.
Source
Originally published at www.fool.com.