The Space Exploration Technologies Corp (NASDAQ: SPCX), AKA SpaceX, share price jumped 19% on its first day of trading.
SpaceX is best known for its reuseable rocket and spacecraft, as well as Starlink which is a satellite-based internet provider.
Great first day for Space Exploration Technologies Corp
There was a lot of pent-up demand for SpaceX shares from global investors, with plenty of retail investors not able to take part in the initial public offering (IPO).
Excitingly for investors who did manage to take part in the IPO, the SpaceX share price finished the day 19% higher than the IPO raising price, ending the day at $161.
At one point, the SpaceX share price reached $176.52, meaning it was up just over 30% at the time.
By climbing to $161, the business is worth more than US$2 trillion.
It’s also worth noting that Elon Musk became a trillionaire as a result of his stakes in SpaceX and Tesla. The next richest person – Google co-founder Larry Page – has around US$295 billion, according to CNBC. Though Bill Gates could be worth US$464 billion had he not donated so much to philanthropy, according to Forbes.
What now?
Whether investors want to or not, a number of exchange-traded funds (ETFs) are likely to invest in the space and AI business and this will give people exposure to SpaceX.
Is the SpaceX share price good value? That’s hard to say. For the near-term, probably not, and its AI division requires significant funding from the rest of the business.
If, in the long-term, a space economy (beyond just Starlink) evolves then SpaceX is in a great position to capitalise on that because it already has a significant market share of launching rockets/taking cargo up into space.
The Space Exploration Technologies Corp share price could see a lot of volatility in the next few years and it’s possible it could drop significantly without any actual meaningful current net profit to help support its valuation. Interested investors may be wise to wait for that situation – overpaying is a painful thing, even if that takes a while to happen.
For me, there are ASX growth shares I’d rather buy for now.
