Investor Steve Eisman, best known for calling out the 2008 subprime debt crisis, weighed in on whether today's market resembles a bubble as IPOs surge and retail enthusiasm fuels big price swings.
‘Not Yet’ A Bubble
On Saturday, Eisman discussed the recent frenzy in new listings on his podcast, The Real Eisman Playbook, addressing the rally behind stocks such as Coreweave Inc. (NASDAQ:CRWV), Figma Inc. (NYSE:FIG) and Atco Ltd. (OTC:ACLLF). “Does this mean we are entering a bubble? I think not yet,” he says. “People can get carried away, but valuations correct quickly.”
Eisman highlighted the shift in investor perceptions over the past decade, saying, “Ten years ago, the attitude was, prove to me you're the next big thing. Now it's, you are the next big thing until proven otherwise.”
He added that retail investors, amplified by social media, are often the ones driving the early momentum in IPO names, citing the example of Atco, which he says has displayed the kind of whiplash trading associated with “meme” stock manias.
“Valuations are all over the map,” he says, pointing out the challenge of assessing companies with limited or no earnings. But unlike in a true bubble, where froth persists for long stretches, many newly listed stocks have corrected swiftly after their initial run-ups.
Eisman concluded by cautioning viewers against calling the current cycle a bubble, saying, “I think not yet,” while adding that he himself looks at every new IPO that hits the market.
Eisman Dismisses Housing Crash Fears
Over a week ago, Eisman similarly dismissed fears of a housing market crash on his podcast, saying that “people just love to predict the end of the world.” Having successfully predicted the 2008 crisis, he said he sees no signs of something similar brewing in 2025.
There are, however, others who continue to warn of a growing bubble in the markets, such as David Rosenberg, of Rosenberg Research.
“We are in a gigantic price bubble that is ongoing. And you know it's a price bubble when prices move up in the face of negative fundamentals,” he said, referring to the jobs revision report last week, which saw 910,000 jobs disappear.
Similarly, technology analyst Beth Kindig is now warning of a bubble forming in the AI software space. “AI software is really in R&D stage,” Kindig explained. “That's where I think the bubble is primarily at [the] software layer.”
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