Even With SpaceX Down 50% From Its High, I'd Still Rather Buy This Unstoppable Growth Stock Before the End of August
Sure, SpaceX is down 50%, but I'd rather buy the profitable growth story. Here's why Cava looks like the smarter long-term investment.
Overview
Space Exploration Technologies (NASDAQ: SPCX) has now fallen roughly 50% from its high, sinking to an all-time low. Bargain hunters are circling, and I understand the temptation. But with money to put to work this August, I would rather own a growth story I have far more conviction in: Cava Group (NYSE: CAVA).
SpaceX's slide is worth a quick look. The stock popped after its June debut, then unwound as the initial hype faded, and it now trades below its offering price at a record low. The timing adds pressure: SpaceX reports its first quarterly results as a public company on Aug. 4, and a large batch of previously restricted shares is set to unlock on Aug. 6, flooding the market with new supply just as sentiment is shaky.
Details
The business is not broken, but the stock still carries an enormous valuation resting on Starship and orbital ambitions that are years from proving out. That is too much uncertainty for my money right now.
Source
Originally published at www.fool.com.