Want to Invest in SpaceX? Don't Buy the Stock. Do This Instead.
Some simple diversification can help mitigate the risk of SpaceX's steep price tag.
Overview
Now that Space Exploration Technologies (NASDAQ: SPCX), aka SpaceX, is finally a public company, individual investors can finally invest in the crown jewel of Elon Musk's business empire in a straightforward way. It's a two-for-one space and artificial intelligence (AI) juggernaut, a unique company that's riding two of Wall Street's hottest growth trends.
But buying SpaceX stock might not be the smartest way to invest right now. The intense hype, excitement, and a low initial float have combined to push SpaceX to an astronomical valuation. If you buy shares now, they could prove a drag on your portfolio if SpaceX cannot sustain its lofty premium.
Details
Instead, consider getting your exposure to SpaceX through an exchange-traded fund (ETF), such as the Invesco QQQ ETF (NASDAQ: QQQ).
Source
Originally published at www.fool.com.