Prediction: SpaceX Stock Could Crash by 50% by 2027
Shares soared on their debut, but it probably won't last.
Prediction: SpaceX Stock Could Crash by 50% by 2027
Overview
On June 12, Elon Musk's iconic space industrial giant, Space Exploration Technologies (NASDAQ: SPCX), also known as SpaceX, went public at $135 per share -- representing an initial market cap of $1.77 trillion. Over the following days, shares continued to grow before the stock settled at a price tag of roughly $185 at the time of writing.
The excitement probably has something to do with Musk's success with previous business ventures like PayPal and Tesla. That said, good vibes and Musk's (mostly) good track record are not enough to explain SpaceX becoming the sixth-most-valuable company in the world. With this in mind, let's dig deeper into the pros and cons of SpaceX to find out why its soaring shares could rapidly fall back down to earth by the end of the year.
Details
On the surface, SpaceX is an extremely attractive business. According to analysts at McKinsey & Company, the global space industry could soar to $1.8 trillion by 2035. And SpaceX is able to tap into this opportunity through various angles, including rocket launches to transport payloads to space, broadband internet, and other satellite-based services.
Source
Originally published at www.fool.com.
