Should You Buy SpaceX Stock This Week or Wait for the Hype to Die Down?
Written by Howard Smith for The Motley Fool -> As with Tesla, investors are looking at what SpaceX will do in the future. SpaceX is dominating space launches, but there's much more to the company. Momentum investors are buying in now, but the future could be volatile. The Spa
As with Tesla, investors are looking at what SpaceX will do in the future.
SpaceX is dominating space launches, but there's much more to the company.
Momentum investors are buying in now, but the future could be volatile.
The Space Exploration Technologies (NASDAQ: SPCX) initial public offering (IPO) went well, with the stock surging 19% on its first day of trading. Those who bought SpaceX at the $135 IPO price should be happy with the stock continuing to move higher after the launch.
As of this writing, SpaceX shares have soared 58% from the offering price. Retail investors now want to know whether they should jump in this week, wait for the frenzy to subside, or pass on the $2.9 trillion stock altogether. The answer should depend on an investor's goals.
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The stock was priced at a level that the current underlying business couldn't justify. But that's not what investors were considering. As with Elon Musk's Tesla , investors are betting on the future of the business. That's made SpaceX a momentum stock in its first week of trading.
Like Tesla, SpaceX has a mature underlying business. In fact, it has several. It dominates the market for commercial space launches, accounting for 80% of U.S. launches last year, according to recent research from The Motley Fool . But the Starlink satellite internet service and xAI artificial intelligence segments are where the real profit outlook lies. SpaceX already made a $60 billion acquisition of Cursor to grow xAI and boost its push into AI coding.
