SpaceX IPO: What Your $5,000 Investment Could Be Worth
The company's valuation prices in lofty growth expectations.
SpaceX IPO: What Your $5,000 Investment Could Be Worth
Overview
Space Exploration Technologies (NASDAQ: SPCX), known as SpaceX, began trading on June 12 in a much-anticipated initial public offering (IPO). The IPO priced at $135, and the stock headed above $175 during that first trading day before closing at $160.95. Still, that provided a one-day gain of more than 19%. As of 1:30 p.m. Monday, the stock was still trending upward, trading in the neighborhood of $183.
Clearly, Wall Street remains enthusiastic so far. However, it's important for investors to look beyond the hype and try to figure out what will happen to the stock over an extended period. Many investors hope Chairman and CEO Elon Musk can produce similar gains with this company to those achieved by another of his companies, Tesla. Over the last 10 years, through June 12, Tesla's shares gained 2,690%. That dwarfed the S&P 500 index's 319.7% total return over the same period.
Details
To predict how much your stake might be worth in a year if you bought SpaceX stock today, investors need to examine the company closely before making some calculations.
Source
Originally published at www.fool.com.
