Veteran short seller James Chanos said SpaceX ’s blockbuster public debut is being driven more by investor enthusiasm for Elon Musk and artificial intelligence than by financial fundamentals, arguing the company’s valuation is difficult to justify on any reasonable business assumptions. Speaking ahead of the company’s highly anticipated initial public offering, Chanos, founder of Chanos & Co., des...
Veteran short seller James Chanos said SpaceX ’s blockbuster public debut is being driven more by investor enthusiasm for Elon Musk and artificial intelligence than by financial fundamentals, arguing the company’s valuation is difficult to justify on any reasonable business assumptions. Speaking ahead of the company’s highly anticipated initial public offering, Chanos, founder of Chanos & Co., described the deal as a key test of market sentiment as investors pour money into speculative growth stories. “We’re going to be doing a $75 billion IPO for a valuation of close to $2 trillion for a company with revenues of $19 billion and negative free cash flow,” Chanos said at the iConnections Global Alts conference in New York that gathered more than 2,500 institutional allocators and fund managers. “This is really a hopes-and-dreams IPO.” The offering has become one of the most closely watched equity debuts in history, with demand reportedly several times higher than the available shares. But Chanos said the valuation reflects expectations for future businesses that remain largely theoretical, including space-based data centers, lunar manufacturing and other ventures tied to Musk’s long-term vision. “The total addressable market for space is infinite,” he said. “You can build whatever stories you want — colonies on Mars, factories on the moon, data centers in space — to justify the valuation.” Chanos compared SpaceX’s premium to the one investors assign to Tesla Inc. , which has a market value that has long been buoyed by expectations around autonomous driving, robotics and artificial intelligence. Yet he argued SpaceX is being valued at a far steeper multiple. “Tesla trades at roughly 14 times revenue based on promises of the future,” he said. “SpaceX is coming at roughly 90 times revenues, which is a completely different animal.” While Chanos stopped short of saying he would immediately short the stock, he indicated skepticism toward the IPO price. Existing businesses, ...
Gold fell for a third day after the US launched fresh strikes against Iran, threatening to extend the war that’s roiled global markets and stoked inflation fears. Bullion dropped as much as 0.9% to near $4,036 an ounce in early trading, having lost 4.4% in the previous session. The US military said it had fired missiles at “ multiple ” targets in Iran after President Donald Trump accused the Islam...
Gold fell for a third day after the US launched fresh strikes against Iran, threatening to extend the war that’s roiled global markets and stoked inflation fears. Bullion dropped as much as 0.9% to near $4,036 an ounce in early trading, having lost 4.4% in the previous session. The US military said it had fired missiles at “ multiple ” targets in Iran after President Donald Trump accused the Islamic Republic of dragging out talks on an interim peace deal. Tehran said its armed forces had the ability to strike back. Read More: US Launches Fresh Wave of Strikes Against Iran, Straining Truce The latest attacks underscored Trump’s growing impatience that the two sides have failed to reach an agreement. Now in its fourth month, the war has disrupted energy flows via the Strait of Hormuz, causing oil prices to rise and raising the likelihood of interest-rate hikes as central banks try to keep inflation in check. US inflation accelerated in May to the fastest pace in more than three years as the war pushed up energy prices, outstripping Americans’ pay gains. The consumer price index climbed 0.5% from April and 4.2% from a year earlier, the most since early 2023, according to Bureau of Labor Statistics data out Wednesday. Gold is more than a fifth below where it was trading before the Iran war broke out at the end of February. The metal’s recent decline through its 200-day moving average — a widely watched measure of long-term momentum — has triggered additional selling as it’s seen as an important level watched by institutional investors. Spot gold fell 0.9% to $4,036.66 an ounce at 6:25 a.m. in Singapore. Silver slid 1.4% to $62.46 an ounce. Platinum and palladium also retreated.
US President Donald Trump said on Wednesday that the United States might not renew its free trade agreement with Canada and Mexico and criticised trade deficits with those countries, although he said he was talking with their leaders about the matter. The three countries need to approve a renewal of their existing agreement by July 1 or signal their intention to exit the pact, a process that w...
US President Donald Trump said on Wednesday that the United States might not renew its free trade agreement with Canada and Mexico and criticised trade deficits with those countries, although he said he was talking with their leaders about the matter. The three countries need to approve a renewal of their existing agreement by July 1 or signal their intention to exit the pact, a process that would take 10 years and would buy time for alterations. “I’m not looking to renew it,” Trump said at...