Shares of Space Exploration Technologies Corp (NASDAQ: SPCX) have been in a tailspin of late.
The rocket company, which is also eyeing massive opportunities in artificial intelligence (AI), initially soared when its shares began trading last month, but the rally has since cooled significantly
Last week, the stock fell to below its IPO price of $135, closing at just under $124 on Friday. Will the stock, which is more commonly known as just SpaceX, continue to fall, or is it likely to bounce back? Here’s where I think it’s headed.
Why SpaceX’s stock could finish the year below $100 SpaceX, for all its hype, is a grossly overvalued stock that’s based primarily on rosy expectations of future growth rather than strong fundamentals. That’s a big risk, particularly in a market that looks as frothy as this one. Although the stock’s initial gains were promising and at one point it looked like its valuation could rise above $3 trillion, a pullback was highly likely.