2 Stocks That Win No Matter What Happens to SpaceX After Its IPO
The SpaceX IPO is going to be huge, but no one knows what the stock will do once it's public.
2 Stocks That Win No Matter What Happens to SpaceX After Its IPO
Overview
Elon Musk is about to test investors' limits with the initial public offering (IPO) of SpaceX. The IPO price has been set at $135 per share, with plans to sell 555.6 shares. That means the company is raising a massive $75 billion. There is material news flow around the deal, some of it positive and some negative. At this point, there's no way to know if the stock will rise or fall once it starts trading.
There are ways for investors to get exposure to the space sector outside of SpaceX before the company's IPO, if you want to play the potential halo effect across the industry. And Baron Partners Fund has a material investment in the currently private company, with the mutual fund's shareholders standing to benefit if the stock takes off. But there's a risk the shares don't do that, and the IPO halo turns into a crown of thorns for the space sector. The only sure-fire winners in this IPO are likely to be investment banks Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS). Here's why.
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Originally published at www.fool.com.
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