SpaceX Delayed Its Starship Launch and the Stock Fell Below Its IPO Price. One of Those Things Matters. The Other Doesn't.
The rocket launch leader scrapped its much-anticipated Starship launch, and there's a lot investors should know.
Overview
Space Exploration Technologies (NASDAQ: SPCX), better known as SpaceX, completed the largest IPO in history earlier this year, and the initial reception was a positive one. However, shares have been under pressure recently and are now trading below their $135 IPO price.
The initial reason for the stock cooling off was simply the post-IPO hype running out of steam, but the latest move can be attributed to the delay of the company's much-anticipated Starship launch. But how much does this delay affect the investment thesis?
Details
To be perfectly clear, Starship is a big part of the long-term investment thesis. Once the Starship rocket (which is much larger than SpaceX's current launch vehicle) reaches the commercial flight stage, it should dramatically improve mass-to-orbit economics and set the company's launch business on a clear path to profitability. Longer-term, this is a crucial component of Elon Musk's plan to put data centers into orbit.
Source
Originally published at www.fool.com.