4 Reasons Short Sellers Should Think Twice before Betting Against Spacex

SpaceX (NASDAQ: SPCX) has taken investors on a wild ride since its public debut on June 12. The aerospace and AI company went public at $135 per share, and its stock started trading at $150 before soaring to a record high of $225.64 on June 16 But today, it trades a

SpaceX (NASDAQ: SPCX) has taken investors on a wild ride since its public debut on June 12.

The aerospace and AI company went public at $135 per share, and its stock started trading at $150 before soaring to a record high of $225.64 on June 16

But today, it trades at about $155.The market hype initially propelled SpaceX’s stock to a record high, but it fizzled out as its early buyers flipped the stock for quick profits and its valuation hit meme-stock levels. At its peak, SpaceX’s market cap reached $2.66 trillion, or 142 times its 2025 revenue of $18.7 billion. SpaceX’s market cap has since dropped to $2.07 trillion, but it still trades at 111 times last year’s sales.

That high price-to-sales ratio might make it seem like an easy target for a short sale, but shorting this volatile stock right now could backfire for four simple reasons. 1. High borrowing costs SpaceX offered less than 5% of its shares in its IPO. Most of its shares are still held by insiders, employees, and early investors, who can’t sell them until their phased lockup periods expire.

Leave a Reply

Your email address will not be published. Required fields are marked *