Space Exploration Technologies Corp (NASDAQ:SPCX)’s shares show just how fast fortunes can change on the stock market. After its IPO in June, which saw the market capitalization soar to $2.5 trillion, it has dropped to $1.48 trillion. Cramer’s comments about the firm after the IPO were mostly focused on market dynamics, lockup expiration, and the stock’s addition to market indices. In this appearance, he discussed Space Exploration Technologies Corp (NASDAQ:SPCX) after the firm launched its latest Starship test flight. Starship is at the center of its plans to build a satellite internet constellation and launch data centers in space. Cramer shared how some voices were defending the stock after the recent successful launch and added that Space Exploration Technologies Corp (NASDAQ:SPCX) could also buy Elon Musk’s car company, Tesla. His remarks were made on Monday:
“[inaudible] a lot of people trying to come to its defense now, saying, look let’s not forget their successful launch. Sub rosa is, yes, they could buy Tesla. I would say that, it’s rather shocking, that, a lot of people were focused on that, but since so many people are in it, I know I’ve got to talk about it.”
The CNBC TV host’s remarks about Space Exploration Technologies Corp (NASDAQ:SPCX)’s successful launch came in the context of the broader debate surrounding the firm. This debate centers around whether its valuation is justified by the current state of the firm’s operations. While Space Exploration Technologies Corp (NASDAQ:SPCX) has outlined a massive $26.5 trillion in AI total addressable market in its IPO, the bears and the bulls are divided on whether the firm’s current valuation justifies its future potential to earn revenue.
Additionally, and tying in with Cramer’s earlier comments, after August 6th, Space Exploration Technologies Corp (NASDAQ:SPCX)’s insider lockup also expires to unlock a whopping one billion shares. The bears worry that the expiration could negatively impact Space Exploration Technologies Corp (NASDAQ:SPCX)’s’s share price. However, one notable bull is Cathie Wood, who has continued to buy the shares as they have dipped recently. Her firm, Ark Invest, recently bought $21.3 millin of Space Exploration Technologies Corp (NASDAQ:SPCX)’s shares amidst the weakness in the share price. In a tweet, the hedge fund boss, in line with Cramer’s remarks, called the firm’s successful Starship flight a game-changer:
“Starship’s successful splashdown was perhaps game-changing news for #SpaceX; yet, the stock dropped further below its IPO price today. The equity market is climbing a “wall of worry”. Bull markets do not end in this way. They end when everyone believes the sky is the limit!”
While we’re yet to compile complete hedge fund data for Space Exploration Technologies Corp (NASDAQ:SPCX), early season filings show some notable stakeholders. These include Zevenbergen Capital Investments, which has disclosed a $16.6 million stake.
While we acknowledge the potential of SPCX to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SPCX and that has 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
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