SpaceX Stock Is Back Near Its IPO Price After a 24% Drop. Here's How to Decide Whether to Buy, Hold, or Sell
In the stock's second week of trading, investors are wondering whether the price swing is an opportunity or a warning.
Overview
Space Exploration Technologies (NASDAQ: SPCX) made its public debut this month, and demand was so intense that the stock quickly shot up to $225 per share from its original $135 initial public offering (IPO) price. The hype has since died down, and SpaceX is currently trading near $150 as of this writing. So how do investors decide whether to buy, hold, or sell in light of this pullback?
First, we must consider the price dip itself and whether it is truly an opportunity, a warning, or just short-term noise to ignore. There really isn't much analyst consensus on SpaceX. Price targets range from an absurdly high $310 to $62 per share, so different conclusions can be reached from the outset.
Details
Only time will tell who has the correct take on Elon Musk's multi-trillion-dollar business. However, this dip is likely driven by a combination of fears and concerns about SpaceX's debt load, inflated valuation, and ability to grow revenue to justify that sky-high valuation.
Source
Originally published at www.fool.com.