Is SpaceX A Buy or Sell After It's IPO?
In a Nutshell
SpaceX IPO opened near 160, surged briefly to 176, then closed around 161, delivering only a modest gain for most retail buyers and missing the expected 200-plus hype surge. At a 2.1 trillion market cap, the company trades at a negative 225 P/E despite 19 billion revenue and heavy losses, relying on Elon Musk-driven growth expectations rather than current fundamentals. The speaker warns against leverage, stresses having a defined exit plan, and expects typical post-IPO cooling before any sustained rally.
These notes were generated by AI and may contain inaccuracies.
The speaker opens by questioning whether anyone else was not really impressed with the SpaceX IPO and states the video will cover both the good and the bad aspects, what was learned after one trading day, and a deeper dive into the company fundamentally. The speaker made $953 from trading SpaceX and closed the entire position.
On the 5-minute timeframe, SpaceX IPOed around 9:50 a.m. and instantly shot up to approximately 161. Five minutes later, the stock ranged from a high of 168 to a low of 155, described as a very volatile period. Within the first 30 minutes, there was some discrepancy with limit order fills. Fifteen minutes after the IPO, it hit highs of 169 and lows of 160, then established support before retesting resistance at 169, breaking above 170, and rallying to highs of 176.
The speaker emphasizes not focusing on the 135 IPO price for average retail traders, noting that realistic average entry prices were likely around 160 if entered within 5-10-15 minutes, but believes the true average price was probably closer to 170. From a 160 average to the day's highs represented a 10% move.
The speaker notes that a 10% move is significant in one day but expresses surprise that SpaceX did not reach 200 or 250 given the hype surrounding the IPO, especially during a period when semiconductor stocks were pushing up 5-10% daily. The stock closed at nearly 161, meaning many who entered near the open likely lost money or broke even.
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