SpaceX Stock Soared 19% on Its Market Debut. Here's Why I'm Not Buying It.
Elon Musk's second trillion-dollar success story just went public.
SpaceX Stock Soared 19% on Its Market Debut. Here's Why I'm Not Buying It.
Overview
SpaceX (NASDAQ: SPCX) went public on Friday, June 12, and ended the day with a 19% gain. The company had a market capitalization of $2.1 trillion at the close of trading, making it the world's seventh-most-valuable company.
While SpaceX is best known for developing the world's first reusable rockets, management believes space-related solutions actually represent its smallest financial opportunity in the long run. Instead, the company could make most of its money by selling connectivity and artificial intelligence (AI) solutions, and it's already having commercial success on both fronts.
Details
That said, SpaceX is still generating very little revenue relative to its enormous market capitalization, which I think creates an uncomfortable risk-versus-reward situation for investors. Here's why I'm not buying the stock.
Source
Originally published at www.fool.com.
