SpaceX has erased almost $1 trillion in stock market value in five weeks — more than most individual companies in the world are worth.
Retail investors who fought for shares at the $135 IPO price are down about 10% now
Those who bought four days later, at the June 16 peak of $225.64, are down around 40%. A 40% discount on the hottest company in the world may look like an obvious buy, but that instinct is exactly what needs examining. Must Read “Hype and quality are not the same thing,” Matthew Fleissig, CEO of the wealth management firm Pathstone, warned in a recent MarketWatch column.
The next two weeks will test which one SpaceX has been trading on. SpaceX (NASDAQ:SPCX) is set to report its first earnings as a public company on Aug. 4, and two trading days after that, hundreds of millions of insider shares will become eligible to sell for the first time. Short sellers already control close to a third of the stock’s tradable float.