Krugman Warns of Hype-Driven Space Race: 'Only Winners Will Be Those Who Exit'

Nobel Prize-winning economist Paul Krugman has compared SpaceX's post-IPO surge to the rally in cryptocurrencies following Trump's 2024 election victory.

According to Krugman, both trades were driven by expectations that may prove difficult to justify over time.

Krugman argued that SpaceX is essentially all about hype, saying it is 'a $2.75 trillion meme stock' and that the only winners will be those who exit before the bottom inevitably falls out.

This comes a day after SpaceX's market cap soared past Amazon.com Inc.'s (AMZN) and briefly eclipsed Microsoft Corp.'s (MSFT), following a blockbuster Nasdaq debut last week.