Paul Krugman Compares SpaceX's $2.6T Valuation to 'Trump Crypto Trade', Warns of 'Meme Stock' Frenzy

Nobel Prize-winning economist Paul Krugman compared SpaceX's $2.6 trillion post-IPO valuation to the "Trump crypto trade" on Tuesday, arguing the company is driven by hype rather than fundamentals. Krugman warned that only early investors who exit before enthusiasm fades will be winners, calling SpaceX "essentially all about hype" and a "meme stock." SPCX shares fell over 3% in Wednesday's opening trade after the company briefly surpassed Microsoft's market cap following its Nasdaq debut.

Not all analysts share Krugman's view. Sequoia Capital partner Shaun Maguire pledged Tuesday to hold his SpaceX stake "forever," citing the company's "biggest vision" and "biggest moat" in history.