SpaceX (NASDAQ:SPCX) analysts are initiating coverage on the stock nearly a month after the highly anticipated IPO. Freedom Capital Markets Chief Market Strategist Jay Woods shares with Benzinga why SpaceX valuation scares him, but he’s not willing to bet against CEO Elon Musk.
SpaceX Short-Term vs. Long-Term
Woods told readers of his weekly newsletter and anyone who asked for advice on the SpaceX IPO, including his father, to make their allocations smaller than they would have liked.
"I think the valuation and the pre-market valuations, they scare me," Woods told Benzinga. "I think there are going to be a lot of people looking to cash out and that’s why I didn’t want it to go into the (S&P 500) index."
Woods said early inclusion in the S&P 500 may have forced buying and made the stock even more volatile at IPO, with people cashing out profits early.
