CNBC’s Jim Cramer raised red flags over rising speculative excess in the initial public offering market on Friday, warning that SpaceX’s anticipated public debut could inflate valuations to dangerous levels.
IPO Sparks Bubble Fears
If underwriters release too few shares, Cramer warned, demand could push SpaceX’s valuation toward $5 trillion. “SpaceX would create a bubble unto its own,” he said on Mad Money.
SpaceX, the parent company of Starlink, the social platform X and the Grok AI chatbot, is said to be planning a June 12 Nasdaq listing, while a 5-for-1 stock split lowers the per-share price. Its IPO prospectus is expected as early as next week.
Reports estimate the company’s valuation at between $1.75 trillion and $2 trillion.
Dot-Com Warning
Cramer warned that the listing could set a precedent for Anthropic and OpenAI, both of which are considering public offerings, adding that a wave of major tech IPOs could lead investors to sell existing …
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