With Elon Musk's ***** eX now embedded in the Nasdaq 100, the prospects of the rocket company have–directly or indirectly–now slipped into the stock portfolios of millions of people around the globe.
But joining the Nasdaq index has done little to convince critics, who are dubious about the lofty aims of the company. In the prospectus ahead of its offering, ***** eX said its goal is "to build the systems and technologies necessary to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars."
Such statements will be laughable to investors of the future, says Jeremy Grantham, co-founder of investment giant GMO. Admittedly, the billionaire British investor is known for his skepticism: He's a self-professed "permabear" and has warned AI's impact will result in "blood in the streets."
It is perhaps no surprise, then, that he is unimpressed by the (literally) out-of-this-world intentions of ***** eX. "Everyone's lining up to tell you to buy the craziest IPO in the history of man," Grantham told Morningstar's The Long View podcast in an episode released this morning, "In 50 years, they'll be telling and writing stories about ***** eX, and they'll be quoting you paragraphs from the prospectus, and you will be laughing at it."
Even the most bullish of investors might be feeling a reality check since ***** eX launched. At the time of writing, ***** eX is down 7% over the past month, hovering at around $150 a share—only slightly ahead of the $135 it targeted at launch.
Wall Street is split on how high ***** eX can fly, though they generally agree it will soar: Morgan Stanley, for example, has reportedly set the price target at $300, while Goldman Sachs's Eric Sheridan and team wrote in a note seen by Fortune that they see it closer to $205.
Sentiments among ***** ysts are, generally, positive. J.P. Morgan wrote that its target is $225 , adding it believes Elon Musk's goal of reaching $1 trillion of revenue by 2031 is possible "but requires strong execution across an ambitious timeline."
But joining the Nasdaq index has done little to convince critics, who are dubious about the lofty aims of the company. In the prospectus ahead of its offering, ***** eX said its goal is "to build the systems and technologies necessary to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars."
Such statements will be laughable to investors of the future, says Jeremy Grantham, co-founder of investment giant GMO. Admittedly, the billionaire British investor is known for his skepticism: He's a self-professed "permabear" and has warned AI's impact will result in "blood in the streets."
It is perhaps no surprise, then, that he is unimpressed by the (literally) out-of-this-world intentions of ***** eX. "Everyone's lining up to tell you to buy the craziest IPO in the history of man," Grantham told Morningstar's The Long View podcast in an episode released this morning, "In 50 years, they'll be telling and writing stories about ***** eX, and they'll be quoting you paragraphs from the prospectus, and you will be laughing at it."
Even the most bullish of investors might be feeling a reality check since ***** eX launched. At the time of writing, ***** eX is down 7% over the past month, hovering at around $150 a share—only slightly ahead of the $135 it targeted at launch.
Wall Street is split on how high ***** eX can fly, though they generally agree it will soar: Morgan Stanley, for example, has reportedly set the price target at $300, while Goldman Sachs's Eric Sheridan and team wrote in a note seen by Fortune that they see it closer to $205.
Sentiments among ***** ysts are, generally, positive. J.P. Morgan wrote that its target is $225 , adding it believes Elon Musk's goal of reaching $1 trillion of revenue by 2031 is possible "but requires strong execution across an ambitious timeline."
22 days ago
