Michael Burry Avoids SpaceX, Questions Its Valuation
Michael Burry, the American investor known for predicting the 2008 housing crash, has revealed that he holds no position in SpaceX. In a recent Substack post, Burry explained that he reviewed several bearish options trades against the company but found put options too expensive. He questioned SpaceX’s nearly $3 trillion valuation, describing the company as “fundamentally a small space company, a niche telecom, a bedeviled social media company, and a Coreweave-light” generating less than $20 billion in annual revenue.
Burry noted that SpaceX’s market capitalization now exceeds that of Warren Buffett’s Berkshire Hathaway. “Berkshire Hathaway has been eclipsed 2 1/2 times over in just three days,” he wrote, calling the scale of investor enthusiasm excessive. He added that while he was tempted by shorter-dated contracts, he ultimately passed.
Burry Reiterates Nvidia Is Overvalued
Burry also reiterated his view that Nvidia is “over-valued,” aligning with his broader warnings that AI-driven stock rallies resemble the final stages of the dot-com bubble. He has urged investors to “reject greed” and scale back exposure to surging technology stocks, cautioning that momentum-driven trades are pushing valuations to unsustainable levels.
Anthropic Valuation Criticized
Recently, Burry warned about the high valuation of AI giant Anthropic, maker of the popular Claude AI model. In Substack discussions, he said he sees little justification for Anthropic’s nearly $1 trillion valuation, calling its AI model business “far too expensive” and unsustainable in the long run. The comments came after Anthropic raised capital at a $965 billion valuation, setting the stage for a public listing at an even loftier figure.
“There is no guarantee, and not even a strong likelihood, that Anthropic is long-term worth anywhere near $1 trillion,” Burry wrote in a subscriber chat thread, according to a Business Insider report.
Burry’s warnings come as tech stocks continue to surge, driven by enthusiasm for artificial intelligence. He advises investors to be cautious and avoid getting caught up in the hype.
