Should You Buy SpaceX Stock 11% Below Its IPO Price?
The company may not have bottomed out yet.
Overview
Space Exploration Technologies (NASDAQ: SPCX) had a hugely successful IPO in June. The company's shares opened at $150, well above its $135 IPO price. The stock kept rising for a couple of weeks, reaching a high of about $225. Alas, since then, it's been a straight southbound trajectory for the space company, and as of writing, the stock has dropped 11% below its IPO price. Is SpaceX worth investing in at current levels?
Image source: The Motley Fool.
Many of SpaceX's grand ambitions rest on its ability to continue innovating within its space segment. The company is working on Starship, a rocket that could help it further cut space travel costs. Starship is fully reusable -- unlike its Falcon 9, which is only partly so -- and has a much larger payload capacity. Starship is still in testing, and on July 16, it was supposed to take off for its thirteenth flight test. Unfortunately, that didn't happen as the flight was aborted due to multiple engine failures.
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Originally published at www.fool.com.