The SpaceX Sell-Off Looks to Be Getting Worse. Here's What Patient Investors Should Do Right Now.
SpaceX's recent pullback may not be over, but for long-term investors, the smarter move could be changing how you buy the stock rather than whether you buy it at all.
Overview
After a debut that sent the stock to a peak near $226 per share within days, Space Exploration Technologies (NASDAQ: SPCX) has given back a large chunk of that run and trades near $160 as of this writing. The pullback has rattled some new shareholders, and the honest read is that it might have more room to fall. That does not make the stock a mistake. It makes the method you use to buy it the thing that matters.
Image source: Getty Images.
The first pressure is supply. SpaceX staggered its insider lockup, and the first block of shares, nearly 20% of the locked pool, is released after the second-quarter report in late July. Smaller tranches will follow through the fall, with the full 180-day batch clearing in December. More sellable shares meeting the same pool of buyers can press the price lower, and that supply arrives on a schedule the market can see coming.
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Originally published at www.fool.com.