SpaceX recently went public, following a significant investment from billionaire Ron Baron in 2017 when the company was valued at under $22 billion. As the company enters the stock market, experts, including investor Louis Navellier, caution potential buyers about the inherent risks of investing in newly public companies. Navellier emphasizes understanding personal risk tolerance before jumping in, particularly given the history of significant price fluctuations in major tech IPOs.
Navellier lists three key reasons for his cautious stance on SpaceX: firstly, despite being a great company, it may not be a wise IPO purchase; secondly, the need for more data on the company’s performance, which will only become clearer after a year of public trading; and finally, potential volatility associated with Elon Musk’s public persona, which can affect the stock price. Overall, he advises investors to wait for stability and clearer fundamentals before committing to SpaceX shares.
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