SpaceX Stock Price Explodes - Should You Buy Now?
In a Nutshell
SpaceX surged nearly 40% post-IPO to a $2.5T market cap, driven by massive ETF buying pressure and momentum. The speaker views both SpaceX and Tesla as overvalued short-term but acknowledges Musk's achievements, including creating 4,400 millionaires in one day. He won't buy at current valuations, warns against shorting due to structural buying flows, and stresses that billionaires' wealth is mostly illiquid paper gains rather than cash.
These notes were generated by AI and may contain inaccuracies.
SpaceX stock rose from a close price of 191 to hit highs of 230 during extended hours after breaking above 200, representing a 19% move on the day followed by an additional nearly 20% gain during overnight hours. The stock is currently up approximately 10.2% to 10.7% in aftermarket trading. The speaker found the 19% daily move more impressive than the initial IPO move.
When SpaceX IPOed, the speaker stated they have no intention of shorting the stock. This is because companies creating SpaceX ETFs or inverse ETFs must first buy shares at market value before offering them, creating significant buying pressure from ETF inflows. The speaker warned about the risks of inverse ETFs, noting that double-leverage ETFs could result in 40% losses from a 20% rally, and leveraged positions could wipe out entire accounts.
SpaceX demonstrates strong momentum, hype, and buying pressure. The speaker acknowledges risk exists on both sides and notes that announcements could trigger retracements. The speaker does not support irrational valuations and believes both Tesla and SpaceX are overvalued in the short term, though they hope SpaceX grows into its market cap and valuation.
In late 2008, Elon Musk was on the verge of bankruptcy. SpaceX had three failed launches with one rocket remaining, and Tesla was days from shutting down. Musk used all money earned from previously sold companies for a final Falcon 1 launch attempt, which succeeded. This established the foundation for what is now a $4 trillion empire combining Tesla and SpaceX. SpaceX as a publicly traded company is worth nearly twice as much as Tesla.
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