SpaceX Stock Is All Over the Place. 3 Dividend Stocks to Buy Instead That Will Let You Sleep Well at Night
Long-term investors should skip the SpaceX roller coaster, and pivot toward these three Dividend Kings instead.
SpaceX Stock Is All Over the Place. 3 Dividend Stocks to Buy Instead That Will Let You Sleep Well at Night
Overview
Since going public on June 12, Space Exploration Technologies Corp. (NASDAQ: SPCX), better known as SpaceX, has experienced roller coaster price action. Going public at an initial public offering (IPO) price of $135 per share, SpaceX zoomed within days to prices topping $225 per share. However, the stock has since pulled back and is now trading at around $180 to $185 per share.
While another near-term rally is possible, so too is a further pullback. Worse yet, unlike other IPO stocks, which typically experience a lockup expiration six months after going public, SpaceX's staggered lockup provisions mean insiders will be able to sell shares as early as later this summer, following SpaceX's first quarterly earnings release.
Details
As SpaceX's float currently represents less than 5% of the outstanding share count, the flood of new shares hitting the market could put serious pressure on the SpaceX stock price. While some may be willing to stomach further volatility, given confidence in the long-term SpaceX bull case, more cautious investors may want to look beyond speculative space stocks.
Source
Originally published at www.fool.com.
