Three days after going public, SpaceX is already trading 55% above its $135 initial public offering price.
But as investors learned during the meme stock era and the 2021 crypto cycle, valuations can move much further than expected when prices are untethered from pure fundamentals.
Perhaps what makes the SpaceX meme stock different is the tiny number of shares that are available to trade compared to the demand. Only 555.6 million shares were sold in last week’s IPO, representing about 5% of SpaceX’s total outstanding stock.
But there might be some genuine news affecting its price too. On Tuesday, SpaceX announced it had entered into a formal agreement to acquire AI startup Cursor in an all-stock deal valued at $60 billion.
Trading involves risk and may not be suitable for all investors. The information provided in this article is for educational purposes only and does not constitute financial advice. Always conduct thorough research and seek professional advice before making any investment decisions.
