Tired of the SpaceX IPO Hype? Here Are 3 Space Economy Stocks to Buy Instead.
There are alternatives to SpaceX for investing in the expanding space economy.
Tired of the SpaceX IPO Hype? Here Are 3 Space Economy Stocks to Buy Instead.
Overview
If you're like me, by now you're a bit tired of the massive hype surrounding this week's SpaceX initial public offering (IPO). Yes, when it goes public, the company -- officially, Space Exploration Technologies Corp. -- will make history, raising some $75 billion and likely achieving a market capitalization of $1.8 trillion, which is enormous.
Yet if you look at the history of IPOs, you might be a bit cautious about investing in SpaceX right away. IPOs don't always succeed, and even if they do, the days and weeks immediately after the IPO tend to present a very poor entry point. One research report by Truist examined 30 major tech IPOs over recent years and found that all experienced a significant drawdown in their first year of trading.
Details
Plus, the SpaceX IPO is two times oversubscribed, so it could be difficult to purchase shares unless you're willing to outbid others once they begin trading. A better strategy is to wait for the almost inevitable dip in the price of the new shares and buy when the valuation makes sense.
Source
Originally published at www.fool.com.
