Gary Black Says 'The Math Doesn't Math' As SPCX Stock Stays Volatile After Blockbuster IPO— Compares Elon Musk-Led Company To Nvidia
Complete. Here is the key summaryInvestor Gary Black criticized SpaceX's post-IPO valuation, stating 'the math doesn't math' as shares remain volatile. He argued that paying 150x 2026 EV/EBITDA is excessive compared to Nvidia's 19x multiple, despite SpaceX's higher growth projections. Economist Mohamed El-Erian noted significant investor divergence in gains and losses following the $400 billion valuation wipeout, while Peter Schiff commented on Elon Musk's paper losses.
Elon Musk-led Space Exploration Technologies Corp (NASDAQ:SPCX) surged past $200 per share following its blockbuster IPO earlier this month, but investor Gary Black of The Future Fund LLC remained unconvinced by the commercial space flight giant’s valuation.
SpaceX’s Valuation Concerns
In a post on X on Tuesday, Black outlined that investors were overpaying for the company’s shares following the IPO. “Investors shouldn’t be paying 150x 2026 EV/EBITDA” for SpaceX. He then drew comparisons with chipmaker NVIDIA Corp (NASDAQ:NVDA), pointing to its far lower valuation.
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He said that NVIDIA was trading at “19x CY 2026 EV/EBITDA,” adding that the chipmaker’s long-term revenue growth was expected to be 10-15% annually. “The math doesn’t math,” he said.
As I argued last week when $SPCX cruised past $200, investors shouldn’t be paying 150x 2026 EV/EBITDA for a business expected to show long-term rev growth of 35-40% per year (4x PEG). $NVDA trades at 19x CY 2026 EV/EBITDA and is expected to post long-term rev growth of 10-15% per… pic.twitter.com/V5YnjuV91i
— Gary Black (@garyblack00) June 23, 2026
Mohamed El Erian, Peter Schiff Weigh In
Economist Mohamed El-Erian, following SpaceX’s IPO, weighed in on the split between the gains and losses incurred by investors as $400 billion was wiped out from SpaceX’s valuation.
“Investors who were lucky enough to acquire their exposure at the IPO are currently up 23%, while those who were very unlucky and bought at the high are down almost 25%. Wild!” the economist said in a post on X.
On the other hand, economist Peter Schiff of Echelon Wealth Partners said that Musk had lost roughly $150 billion on paper, which is the net worth of investor Warren Buffett. “He’s still the world’s only trillionaire, so don’t feel sorry for him,” Schiff said.
According to Benzinga Edge Rankings, SpaceX fails to provide a favorable price trend in the Short, Medium and Long term.
Price Action: SpaceX shares were unchanged 0.00% at $148.18 during premarket trading Tuesday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
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