AI Summary
5 min readSpaceX Down Nearly 50% — Is the AI Bubble Starting to Crack?
The SpaceX stock that debuted with such euphoria in mid-June has now fallen for seven straight trading days, closing at a fresh low and sitting nearly 50% below its post-IPO record high. The drop is striking, but host JJ is careful not to declare it definitive evidence of anything broader — yet. The real question running through the episode is whether this is an isolated pullback or one of several early cracks in what many have called the AI bubble. SpaceX, after all, is tied into the AI story through orbital data centers, and its slide coincides with weakness in Tesla, Nvidia, memory stocks, and Oracle — a company down more than 60% from its September 2025 peak.
The Three-Legged Stool of Bubble Signs
Jim Chanos, the famed short seller who helped expose Enron, has been making a detailed case that the current AI infrastructure buildout is worse than the dot-com era. JJ walks through Chanos's framework, which identifies three structural warning signs now present in the market.
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What you'll learn
- 1 (00:00) **Opening & SpaceX Stock Crash** - JJ introduces the episode, noting SpaceX stock is down nearly 50% from its post-IPO high after seven straight days of losses, and questions if the AI bubble is beginning to crack.
- 2 (01:07) **SpaceX Details: Fresh Lows & Lockup Expiry** - SpaceX drops another 3%, marking a new low; key upcoming events include first earnings report and expiration of insider selling lockups.
- 3 (02:24) **SpaceX in Index Funds: Rule Changes** - Discusses how SpaceX's inclusion in the NASDAQ 100 required rule changes, which JJ views as a sign of market craziness.
- 4 (03:13) **Market Peak? Sven Carlin's Warning** - References value investor Sven Carlin's chart suggesting the market may have peaked two weeks ago, though JJ clarifies it's too early to call a bubble burst.
- 5 (04:59) **Jim Chanos on the AI Bubble** - Introduces famed short seller Jim Chanos, who argues the AI bubble is worse than the dot-com bubble, citing three key legs.
- 6 (07:07) **Chanos's Detailed Case: Infrastructure Bubble** - Chanos compares today's AI build-out to the late-1990s infrastructure boom, highlighting falling returns on capital and shifting business models.
- 7 (08:39) **Data Center Builders Offloading Stakes** - Reports that data center developers are racing to sell majority equity stakes worth tens of billions, raising questions about whether this marks the top of the cycle.
+ Full timestamped outline available in the app
Show Notes
John Johnston (JJ) breaks down how SpaceX stock has gone down nearly 50% from the high it set just days after its historic IPO in June 2026. We also ponder the question: has the AI bubble peaked? We look at various market and AI sector signs and news, including what famed short seller Jim Chanos is currently saying, and how memory sector stocks have given way after a stellar run-up recently.
Related episodes:
SpaceX Stock Crashes $1T & AI Trade Reverses! https://open.spotify.com/episode/7jC4ipCe0PADreDavJVua8
SpaceX Stock is Crashing & Tesla Investors Want Answers https://open.spotify.com/episode/2Jey6dAGdZeZNXvAk6DGj7
Referenced videos:
Did the Market Bubble Peak Two Weeks Ago? Value Investing with Seven Carlin https://youtu.be/d9_e_oMHxw0
The Memory Meltdown Has Begun https://youtu.be/_AJJBYYpgkI | RiskReversal Media
AI Bubble: Data center equity is getting dumped | Ed Zitron | The Tech Report Reporthttps://open.spotify.com/episode/6OqXd8Hoot9XD3jKS4Fo5d
Disclaimer: I am not a financial adviser and nothing in this content is financial advice. This content is for general education and entertainment purposes only. Do your own analysis and seek professional financial advice before making any investment decision.
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