Space Exploration Technologies' (NASDAQ: SPCX) initial public offering (IPO) drew huge interest from retail and institutional investors, and according to reports, it was more than four times oversubscribed. So far, though, SpaceX's stock performance has been unspectacular, and it traded below its IPO price for several weeks. However, it's been rising since it delivered its second-quarter earnings report, its first as a public company.
This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia.
Continue » If you'd invested $10,000 when the stock began trading on the public markets, you would have received just over 66 shares at $150 apiece. At Friday's closing price of $140.00, you'd have a position worth $9,333.33, or a 6.67% decrease. That's pretty disappointing, but SpaceX has only been on the market for two months.
As with any stock, investors should take a long-term approach to SpaceX, not buy it in hopes of a quick gain. A relatively small number of retail investors were able to buy in at the IPO, getting the $135 price that was otherwise limited to institutions and wealthy buyers. But they haven't fared too much better.
SpaceX stock was sitting below its IPO price of $135 for many weeks, although on Friday, it was back above it. If you missed the chance to buy at IPO or on the first day of trading, you haven't missed much. My personal view is that the stock is too expensive right now, trading at 64 times trailing-12-month sales, and too volatile while lockup periods remain.
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