Jeremy Grantham, the GMO co-founder known for predicting historical market crashes, has identified SpaceX as a bubble due to its valuation of 100 times sales. During a recent appearance on the Odd Lots podcast, Grantham criticized the company's prospectus, arguing that roughly 90% of its value is derived from artificial intelligence expectations he deems unrealistic. He warned that such mega listings could destabilize the S&P 500 from within, drawing parallels to historical manias like the South Sea Bubble.

Grantham contends that SpaceX's own AI technology is underperforming compared to rivals. He noted that investors are prioritizing a compelling narrative over factual performance, a behavior he believes characterizes the current market environment. According to Grantham, future historians will view the SpaceX prospectus as a "novel slash joke" if the market collapses as he anticipates.

AI Competitiveness and Market Odds

The skepticism regarding SpaceX's AI capabilities is reflected in current prediction market data. Polymarket indicates that xAI has only a 5% chance of possessing the best AI model by the end of the year. In contrast, Anthropic holds a 61% probability of leading the sector. This data suggests a significant disconnect between SpaceX's valuation and the perceived strength of its AI technology relative to competitors.

Prediction Market Forecasts

Traders on Polymarket currently assign a 13% probability to SpaceX reaching a $3 trillion valuation this month, a decrease from earlier in the week. The broader market sentiment also shows limited immediate concern for Grantham's bubble thesis, with only a 21% chance of an AI bubble bursting this year and a 13% chance of a recession occurring within the same timeframe.

Risks to the Magnificent Seven

Grantham extended his critique to the "Magnificent Seven," arguing that the era of comfortable monopolies is ending. He posited that these companies are now engaged in a capital-intensive AI race where only one winner is likely to emerge. He warned that the market continues to price these stocks as safe monopolies rather than competitors in a high-stakes "dogfight," creating a potential disconnect between current valuations and future profitability.

Flow Cayman has partnered with Starlink to provide satellite-based backup connectivity for its mobile network ahead of the peak Atlantic hurricane season. The agreement aims to prevent network blackouts by addressing the vulnerability of fiber-optic and terrestrial links during major infrastructure failures. Elon Musk highlighted the initiative, stating that Starlink provides backup connectivity to cell towers, ensuring phone service works when it is most needed.

Automatic Failover Mechanism

The new system is designed to maintain mobile services even when traditional infrastructure is disrupted. While mobile towers already possess battery and generator backups for power, the Starlink integration resolves the issue of lost network connectivity due to damaged landlines. Flow Cayman Country Manager Bruno Delhaise explained that if the primary connection is lost, connectivity will automatically fail over to satellite links.

"Everything happens in the background," Delhaise said. "They would use their phone seamlessly, and that phone will connect as usual to their mobile connections." The transition requires no action from customers, and the service will be provided at no additional cost.

Starlink's Emergency Role

This deployment reflects Starlink's increasing use as emergency communications infrastructure. The partnership builds on lessons learned from previous hurricanes in the Caribbean, including Jamaica, where Starlink was utilized to restore connectivity in affected areas. Beyond this specific agreement, Starlink has been used to support remote healthcare facilities and disaster-hit regions globally.

In 2024, SpaceX offered free Starlink internet access to people affected by Hurricanes Helene and Milton through the end of the year. The company continues to expand its footprint in critical communication sectors, leveraging its satellite constellation to bridge gaps during crises.

SpaceX Stock Performance

SpaceX shares closed at $185.00 on Thursday, down 3.56% for the day. The stock fell a further 1.84% to $181.60 in after-hours trading. Despite recent volatility, analyst ratings indicate a positive trend for the stock over the short, medium, and long term.