As SpaceX Falls Down to Earth, the Stock Is Still Not a Buy

Space Exploration Technologies (NASDAQ: SPCX), or SpaceX, became the largest company ever to undertake an initial public offering (IPO) earlier this month, and the stock had a strong start out of the gate. It rose three straight days after debuting, hitting a high of $225.64. However, the stock has since pulled back to levels at which it traded on its first day, and I would be wary of buying it here. Historically, it is very common for stocks to eventually trade below their opening-day low. According to The Lifecycle Trade, this happens about 90% of the time. In fact, SpaceX traded below its day-one low price for the first time on June 23, only six trading days after its debut.This is notable since the stock currently has a very low initial float of just 4%, and there should have been some initial institutional buying to support it. Now it faces a series of share lock-up expirations that will increase its float over the next year, which could pressure its shares. The company has an astonishing 15 lockup expirations over the next year-plus.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool