There is no rational reason to invest in SpaceX. Why? The numbers are not in its favor. Any traditional analysis will show that SpaceX’s $2T valuation is not justified. Morningstar says the stock is “significantly overvalued” with a fair value of $63—42% of the IPO price. But still, too many investors put their savings in SPCX stock. I trade in it too. Why? Because the market is filled with uninformed investors. The stock market is a place where rational thinking doesn’t always work. You can’t apply logic to evaluate an entity that’s not driven by logic. So, although I know SPCX’s valuation is unrealistic, I trade in it because it’s a highly volatile short term trade vehicle. So I’m making a few bucks. But I’m extremely careful. It’s like playing with fire. Be careful if you are trading. This is not for the inexperienced or weak-hearted. Don’t get burnt! It’s a a money-losing company with $18.7 billion in revenue now trades at over 100 times sales. But then who knows? One of you may punch me next year for my views on SPCX!
