SpaceX Is Down Nearly 50% From Its All-Time High -- That's Great News for Long-Term Investors
The more this stock deflates, the better the long-term potential becomes.
Overview
Space Exploration Technologies (NASDAQ: SPCX) has been on a remarkable losing streak. As of this writing, ten out of the previous 12 trading days have ended with a new record-low closing price. SpaceX's stock is trading roughly 50% below its all-time high of $225 and about 15% below its $135 IPO price.
I could insert a tired joke on failed launches or downward trajectories, but that would only distract from an important point: If you've been holding out on buying SpaceX, the buying opportunity might be coming into view. Here's what I mean.
Details
Throughout SpaceX's short life on the market, the stock -- at least for disciples of Warren Buffett and Benjamin Graham like moi -- has been overburdened by an absurdly high valuation. I could pull any valuation metric out of my hat -- a price-to-sales ratio of 77, for instance -- but you square it, SpaceX stock has looked repulsively pricy by traditional standards.
Source
Originally published at www.fool.com.