As expected, SpaceX (SPCX) continued its rise on Monday. Shares added 19.6% to close at a market capitalization of $2.5 trillion. The firm is now worth more than Taiwan Semiconductor (TSM), Tesla (TSLA), Meta Platforms (META), and Micron (MU). It trails Amazon (AMZN) but not by much.
Readers feeling the urge to buy SPCX need to realize that FOMO – the fear of missing out – is not risk-free. If the momentum ends abruptly or even slowly, FOMO buyers might end up having bought shares at their top.
SpaceX’s next major event is around July 6. Nasdaq-100 (QQQ) will add the stock to the index. That will force passive funds tracking the index to buy shares. The next major event is between August 20 and October 24. In that time, insider lockup expiries will increase the supply of SPCX stock. That would put pressure on the share price.
Fox (FOX) fell by 15% to close at $49.96. The stock is back at lows not seen since February. It announced it would buy Roku (ROKU) for $22 billion. The merged firm hurts shareholders, since the combined firm would have a net leverage of around 2.8 times. The media sector is struggling on the stock markets. Comcast (CMCSA) traded near a low, while Netflix (NFLX) is just 8.88% above its 52-week low.
