Prediction: SpaceX Stock Will Crash This Year. Here's Why.

Elon Musk may seem to have the Midas touch when it comes to business. With his track record of beating the odds and creating successful businesses that can disrupt entire industries, it is tempting for investors to bet on any company that has his name attached to it. Past success, however, doesn't guarantee future results. And there are several reasons SpaceX might not live up to expectations after its initial public offering (IPO) planned for next month. Let's dig deeper into how unprofitable artificial intelligence (AI) exposure and a highly speculative business strategy could cause the stock to underperform after its public debut. SpaceX could become the largest public stock debut in history with an expected valuation of $2 trillion. To put that number in perspective, it would make SpaceX worth more than all but six public companies on the planet. Furthermore, SpaceX's potential market capitalization isn't well supported by its business fundamentals.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool