Just about everyone had their eyes on the Space Exploration Technologies’ (NASDAQ: SPCX) initial public offering (IPO), which ended up being the largest-ever IPO in market history.
For weeks, nobody could talk about anything else, and now that the honeymoon stage is over, and the confetti swept away, gravity is bringing the stock back down to Earth
After hitting a lifetime high of about $225 in mid-June, SpaceX stock now trades in the mid-$150s to the low $160s — a drop of about 30%. Despite the dip, however, I would not call SpaceX a screaming buy — or even a murmuring one. Part of that is because of SpaceX’s valuation.
With a market capitalization of over $2 trillion, SpaceX still trades at more than 100 times trailing revenue. That’s extraordinarily high. For context, Nvidia trades at roughly 19 times sales, Microsoft around 9, and Amazon around 3.5.