4 Reasons Short Sellers Should Think Twice Before Betting Against SpaceX
Shorting SpaceX right now could be a really bad idea.
4 Reasons Short Sellers Should Think Twice Before Betting Against SpaceX
Overview
SpaceX (NASDAQ: SPCX) has taken investors on a wild ride since its public debut on June 12. The aerospace and AI company went public at $135 per share, and its stock started trading at $150 before soaring to a record high of $225.64 on June 16. But today, it trades at about $155.The market hype initially propelled SpaceX's stock to a record high, but it fizzled out as its early buyers flipped the stock for quick profits and its valuation hit meme-stock levels. At its peak, SpaceX's market cap reached $2.66 trillion, or 142 times its 2025 revenue of $18.7 billion.
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SpaceX's market cap has since dropped to $2.07 trillion, but it still trades at 111 times last year's sales. That high price-to-sales ratio might make it seem like an easy target for a short sale, but shorting this volatile stock right now could backfire for four simple reasons.
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Originally published at www.fool.com.
