The Smartest Way to Bet on SpaceX Right Now Is Hiding in Plain Sight
SpaceX will need a lot of energy to fuel growth.
The Smartest Way to Bet on SpaceX Right Now Is Hiding in Plain Sight
Overview
Investing in SpaceX (NASDAQ: SPCX) after its record-breaking IPO may or may not be a wise investment decision. Never before have we seen a business quite like SpaceX. Even the company's IPO prospectus admits that its most promising opportunities are still "relatively early stage." This means most of the company's valuation will be based on future growth, not past success -- a difficult reality for any investor to accurately process.
Here's the thing: Uncertainty regarding whether SpaceX will succeed as a long-term investment won't stop it from going on a massive spending spree. The company believes it has identified "the largest actionable total addressable market in human history." In total, SpaceX believes its growth potential amounts to $28.5 trillion -- significantly higher than its initial $1.77 trillion IPO valuation.
Details
With $75 billion in fresh capital, expect SpaceX to deploy its new funds quickly to bolster growth. Which companies will be on the receiving end of SpaceX's riches? One clue in the company's IPO prospectus reveals a likely answer.
Source
Originally published at www.fool.com.
