I Didn't Buy the SpaceX IPO. Here's Why, and What I Bought Instead.
SpaceX had a hugely successful IPO, but investors shouldn't ignore this potentially explosive growth play.
I Didn't Buy the SpaceX IPO. Here's Why, and What I Bought Instead.
Overview
Space Exploration Technologies' (NASDAQ: SPCX) initial public offering was a big hit. The company's share price is up 15% since market close on the day of its public debut even after a recent pullback, and its market capitalization has soared to $2.43 trillion from the $1.77 trillion valuation that the company's shares were first sold at.
SpaceX's IPO has made CEO Elon Musk the world's first trillionaire, and the tech leader has bold predictions about how quickly the business could grow. Strikingly, Musk has said that the business could reach $1 trillion in revenue by 2030 -- up from sales of $18.7 billion in 2025. But while SpaceX's market debut has been red hot and excitement surrounding the stock has been high, I haven't been buying shares because I think the valuation looks too rich based on its current sales profile. Instead, I've been buying shares of Kraken Robotics (OTC: KRKNF) -- a subsea technologies specialist that's attracting much less attention. Here's why.
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Originally published at www.fool.com.
