SpaceX Stock Is Up. Here Are 4 Reasons I'm Still Not Buying.
SpaceX's historic IPO has investors buzzing, but the valuation concerns have been covered to death. Here are four under-the-radar reasons I'm staying on the sidelines.
SpaceX Stock Is Up. Here Are 4 Reasons I'm Still Not Buying.
Overview
When Space Exploration Technologies (NASDAQ: SPCX) made its public debut on June 12, it was already the largest stock market debut in history by a mile. Within days, its valuation had surpassed Amazon and was briefly on the heels of Microsoft. There's definitely a lot of excitement over SpaceX (as it's better known).
But while I love rockets and all things space, I'm not buying. I could begin and end with its valuation -- its price-to-sales ratio is nearly 30 times that of Amazon and 15 times that of Microsoft -- but that's been talked about ad nauseam, so here are four reasons that you might not have considered.
Details
I think messaging from a company matters. It tells you a lot about the attitudes of those who run it and what they think of their investors. In its S-1 IPO filing, SpaceX says it's chasing a $28.5 trillion total addressable market (TAM) -- 93% of this is supposed to come not from its rockets and not from Starlink, but from its AI division.
Source
Originally published at www.fool.com.
