SpaceX shares closed just above $115 on July 22, sitting nearly 20% below the company's $135 IPO price and almost 50% off the post-listing peak of $225. That slide prompted veteran economist Peter Schiff to post a blunt warning on X, suggesting the selloff could be an early signal of something bigger hitting overhyped assets across equities and crypto alike.
What the numbers actually show
As of July 23, SPCX was down another 6.7% on the day. The stock has been pressured by a mix of factors: stretched valuations at listing, broader weakness in tech, and looming supply concerns as lockup restrictions expire and more shares hit the market. It listed at $135, briefly ran to $225, and has now given back essentially everything gained since the IPO pop.
Schiff's quote was direct: "SPCX closed just above $115, nearly 20% below its IPO price and almost 50% below its high. This could be a harbinger of things to come for other overhyped stocks and cryptos. Look out below!"
How Schiff frames the broader picture
The economist had flagged a similar concern just days earlier, pointing to SpaceX shares as a possible warning sign that the AI stock rally was running out of steam. His position is specific: he does not call AI itself a bubble, but argues that the stocks built around AI enthusiasm have become dangerously overpriced. "AI isn't a bubble, but AI stocks are. The bubble has likely already popped," he wrote separately.
Schiff also brought up competitive pressure from Chinese AI models, citing Moonshot AI's Kimi K3 and DeepSeek Chat as examples of lower-cost alternatives that could force U.S. investors to rethink the premium they're paying for domestic AI names. His broader concern is that markets have been pricing in expectations that are unlikely to hold once valuations are stress-tested against real competition and slower growth.
This article is for informational purposes only and does not constitute financial advice. Investing in stocks or cryptocurrencies carries risk, and past performance is not indicative of future results.
