SpaceX Briefly Dropped Out of the $2 Trillion Club This Week. Here's My Top Buy of the 6 Stocks That Are Secure Members.
Amazon already has a dominant position in cloud computing, but its stock is down 11% from its all-time high.
Overview
The roller-coaster ride of Space Exploration Technologies (NASDAQ: SPCX) is in a valley -- and it probably won't be the last of them. Less than a month after its record-setting initial public offering, SpaceX has repeatedly traded this week at levels below the $150 share price at which it opened its first trading day. As of Wednesday's close, Elon Musk's company was no longer a member of the $2 trillion club, as its market cap had fallen to $1.97 trillion. It edged back in (barely) on Thursday, but its hold on membership is looking tenuous at best.
Investors who bought in during those first heady days when SpaceX stock surged to a peak above $225 have to be disappointed, but they shouldn't be surprised. IPO stocks are notoriously fickle, and many tend to fall after the FOMO surge fades. Expect the volatility to continue as SpaceX is added to index funds (a tailwind), lockup periods expire (a headwind), and the company starts reporting quarterly earnings.
Details
There are now just six companies with market caps that are comfortably above $2 trillion, and I think all of them are safer investments than SpaceX stock. But the best buy among them, in my view, has to be Amazon (NASDAQ: AMZN).
Source
Originally published at www.fool.com.