Jim Cramer Just Warned Against SpaceX Stock: Bullish Sign for Elon Musk?

Jim Cramer has done it again. The CNBC host warned this week that SpaceX stock could surge to unsustainable levels at its debut, and for a growing crowd of investors, that warning reads as the most bullish signal they have seen all year.

SpaceX set its IPO price at $135 per share, valuing the company at $1.77 trillion and making it the largest IPO in history. With shares expected to begin trading on Nasdaq today, June 12, under the ticker SPCX, demand has been extraordinary, with the deal reportedly four times oversubscribed.

What Cramer Said About SpaceX Stock

Cramer told Mad Money viewers that a massive first-day surge is the last thing SpaceX needs. His concern centers on inexperienced retail investors placing market orders rather than limit orders, which could artificially spike the price and set the stock up for a sharp correction.

He warned SpaceX could briefly command a valuation rivaling the world’s largest companies, a level he said rarely ends well for buyers who chase the open.

Cramer first raised the alarm in May, when he said the IPO feeding frenzy could be “destructive” for the broader market, pulling capital away from other equities. He has since focused his concern on speculative short-term investors who may rush to sell shares shortly after trading opens.

The Reverse Cramer Effect Has a Track Record

The investing community has a different read. The “reverse Cramer effect” holds that his negative calls reliably precede rallies.

In 2017, he called Bitcoin “monopoly money” just before it rose to nearly $20,000. Then, in June 2021, he sold most of his Bitcoin position, citing fears over China’s crackdown, right before the market rebounded. Also, in January 2024, he warned of a Bitcoin selloff ahead of the US spot ETF launch, which became one of crypto’s biggest catalysts that year.

The pattern became so well-established that Wall Street built a structured product around it. The Inverse Cramer Tracker ETF (SJIM) launched in 2023, designed to bet against whatever Cramer recommends. The evidence spans multiple market cycles, from Bitcoin’s 2017 surge to the 2024 spot ETF rally.

SpaceX Brings a Bitcoin Treasury to Public Markets

One angle that sets this IPO apart from any other: SpaceX holds 18,712 Bitcoin on its balance sheet, worth roughly $2 billion at current prices. When SpaceX stock begins trading, public investors gain exposure to that treasury for the first time. Analysts have already begun mapping what the listing could mean for crypto markets more broadly.

Whether Cramer is right or wrong, his warning has already done one thing: it has given contrarian investors exactly the conviction they need to buy.