Peter Schiff warns that a drop in SpaceX’s stock price may signal the risks of an AI boom

Deep Tide TechFlow message: On July 26, according to TheStreet, economist Peter Schiff said that SpaceX (SPCX) shares’ recent decline could be a warning sign that the market is increasingly concerned about rising risks tied to overvalued AI stocks and crypto assets. He believes SpaceX’s correction is not a problem with a single company, but may reflect a trend of cooling investor enthusiasm for popular assets.

SpaceX shares closed on July 22 at $115.26, down about 49% from their all-time high, and below the $135 issue price paid by institutional investors when they subscribed in June. Schiff posted on X that the decline in SpaceX “may foreshadow a future trend,” and previously said, “AI isn’t a bubble, but AI stocks are.”

In addition, SpaceX issued $25 billion in bonds in June covering multiple maturities. Among them, the yield on the 2056 maturity bond this week rose to a record 7.6%, reflecting bond investors’ reassessment of the long-term risk premium.

SPCX-2.71%
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