2 Reasons Investors Should Not Short SpaceX Stock
Betting against Elon Musk can burn investors.
2 Reasons Investors Should Not Short SpaceX Stock
Overview
At first glance, Space Exploration Technologies Corp. (NASDAQ: SPCX) may appear to be headed for an "obvious" pullback. IPOs tend to falter soon after their launch, and Warren Buffett specifically warned against such stocks at various points in his investing career. Additionally, with a price-to-sales (P/S) ratio approaching 135 times 2025 earnings, it may look like an open-and-shut case of overvaluation.
Nonetheless, such scenarios do not always make a stock a candidate for short-selling. Hence, before shorting SpaceX stock, investors may want to keep these two factors in mind.
Image source: The Motley Fool.
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Originally published at www.fool.com.
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