Investing $1,000 in SpaceX: Could It Deliver Life-Changing Returns?
The stock has cooled off from its hot IPO. Is now the time to buy?
Overview
Now that the IPO hype surrounding Space Exploration Technologies (NASDAQ: SPCX), better known as SpaceX, has died down, investors may be better able to analyze the stock for what it is. Furthermore, it's priced at less than $140 per share, and is near the lowest price that retail investors have been able to buy it at. If you've got $1,000 sitting around waiting to be invested, is SpaceX the perfect stock to buy right now? Or are there better options out there?
Image source: The Motley Fool.
First, let's discuss what qualifies as a "life-changing" return on an investment. I'd consider that to be something along the lines of a tenfold to hundredfold return, or turning $1,000 into $10,000 to $100,000. If that's what investors are looking for with SpaceX, they may be sorely disappointed. Currently, it has a market cap of about $1.8 trillion. So a tenfold return from here would be a $18 trillion company -- more than Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Microsoft (NASDAQ: MSFT) combined at their current valuations. An outcome like that is probably a bit too far-fetched to expect.
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Originally published at www.fool.com.