Investor Steve Eisman said he is not a fan of the upcoming SpaceX initial public offering.

Eisman's skepticism highlights a growing tension between fundamental financial valuations and the market enthusiasm often driven by high-profile founders. His warnings suggest that the stock may be priced for speculation rather than sustainable growth.

Speaking during an interview on CNBC’s "Squawk Box" program, Eisman said the expected valuation of the aerospace company is "kind of crazy" [1]. He said the only way to justify such a price is for the stock to become a "retail cult stock" [1].

Eisman, a former Neuberger senior portfolio manager and host of "The Real Eisman Playbook" podcast, said the IPO could attract a level of retail fervor that ignores traditional metrics [2]. This perspective mirrors his previous high-profile bets against market bubbles.

The company is planning its IPO debut for June 12, 2024 [3], and is expected to use the ticker symbol SPCX [3].

Eisman said he is not a fan of the move [4]. He said the valuation is excessively high and would only be sustainable if the investment turns into a retail-driven phenomenon [2].

“"I’m not a fan of the upcoming SpaceX IPO."”

The warning from a known contrarian like Steve Eisman suggests that SpaceX may enter the public market with a valuation detached from its current cash flow. If the stock behaves as a 'cult stock,' its price will be driven by retail sentiment and the brand of Elon Musk rather than traditional earnings, increasing the risk of extreme volatility for new investors.