Michael Burry Challenges Lofty Valuations: SpaceX & Anthropic

Michael Burry, the man who saw the housing crash coming while others were blinded by greed, is sounding alarms again. This time, his targets are SpaceX and Anthropic, two companies drunk on their own valuations.

Are SpaceX's Valuations Stuck in Orbit?

Let's talk numbers. SpaceX filed an S-1 and revealed they raked in $18.7 billion in revenue last year but also posted a $4.9 billion net loss. Yet, they're teasing a $2 trillion valuation. Burry's take? It's all hype and technicals, nothing in the S-1 screams trillion-dollar company. And he's right. Everyone has a plan until liquidation hits.

SpaceX's ambition to ride the IPO wave with such a lofty valuation seems more like wishful thinking than grounded reality. The funding rate is lying to you again.

Anthropic's AI Valuation: A Mirage?

Anthropic's tale isn't any different. They just announced a $965 billion valuation with hopes of an even bigger number when going public. Burry isn't buying it. He argues the AI startup's models demand too much brute force, hinting that today's demand is a false signal. He's betting on computing power becoming as commoditized as internet use.

Will Anthropic ever touch that $1 trillion mark? Burry jokes that he'd count to a trillion first, a task that'd take 240,000 years. That's a lot of bag holders waiting for a payday that may never come. Bullish on hopium, bearish on math.

Burry's Track Record: A Voice to Heed?

Burry's skepticism comes from experience. His prescient bet against the mid-2000s housing bubble was chronicled in 'The Big Short.' Now he's pivoting to Substack, sharing insights into personal investments and market forecasts.

The market's fixation on tech darlings like SpaceX and Anthropic mirrors the overexuberance seen before past crashes. Is it déjà vu? Zoom out. No, further. See it now?