Jim Cramer sends a stern message to SpaceX buyers

SpaceX, the most hyped listing in market history, made headlines when it priced its initial public offering (IPO) at $135 a share on June 12, raising about $75 billion. The stock soared approximately 19% on its first day, surpassing Microsoft in value with a market cap near $2.7 trillion. Retail investors had already placed over $100 billion in orders before the stock even started trading.

However, CNBC’s Jim Cramer, a vocal supporter of SpaceX, expressed concern on June 16 about the stock behaving like a meme stock. He cautioned against the rapid rise in stock price, likening it to a potential bubble waiting to burst. Despite his reservations, he reiterated his admiration for the company.

SpaceX has evolved beyond a mere rocket company, incorporating AI technologies and ventures into its business. Elon Musk’s integration of xAI into SpaceX earlier this year expanded its portfolio to include AI models, the X social platform, and data centers. The company’s foray into Bitcoin and the crypto market has also attracted investors looking to capitalize on Musk’s influence in both industries.

While SpaceX’s revenue reached $18.67 billion in 2025, it reported a net loss of $4.94 billion, resulting in a high valuation of 94 times trailing sales at the IPO price. Musk’s ambitious target of $1 trillion in annual revenue by 2030 poses a significant risk for investors paying upfront for future growth.

Despite bullish sentiments from investors like Baron Capital and Cathie Wood’s ARK funds, SpaceX’s stock price has surpassed all Wall Street price targets. This discrepancy raises concerns about the stock’s valuation and potential for a market correction.

As SpaceX continues to dominate the space industry and expand its AI capabilities, the focus remains on whether the stock price reflects the company’s true value. Investors must weigh the allure of the dream against the reality of overvaluation, especially in a market susceptible to sudden shifts in sentiment.

In conclusion, while SpaceX’s business fundamentals remain strong, the disconnect between the stock price and Wall Street estimates underscores the need for caution. Investors should carefully assess the risks and rewards of holding SpaceX stock amidst a volatile market landscape.