Economist Peter Schiff has cautioned against rushing to invest in the hype surrounding a stock, outlining Elon Musk-led Space Exploration Technologies Corp.'s (NASDAQ:SPCX) recent decline as an example.
SPCX Down Nearly 19% From IPO Value Taking to the social media platform X on Monday, the Echelon Wealth Partners co-founder said that SpaceX was "coming back down to earth" as shares traded at $110.05, the investor said.
SpaceX's value hit an intraday low on Monday at $108.66, which was also its all-time low.
Read Also: Elon Musk Touts ‘Successful’ Starship Test, Says Rocket Was 'Intentionally' Launched Faster To Test Heat Shield Capability "That’s 18.5% below the IPO price and 51% below the high" of approximately $225/share following its public debut last month, Schiff said.
"This is an example of why it’s so dangerous to rush into buying a heavily hyped IPO during its first few days of trading," he shared. $SPCX is coming back down to earth.
