SpaceX, the space company of the world’s richest businessman Elon Musk, has created history as soon as it entered the American stock market. After its IPO, the company’s shares have jumped by about 60.3% in the first three trading days. Due to this stormy rise, the market cap of SpaceX reached $2.94 trillion, leaving behind even the giants Microsoft and Amazon. The best thing for Indian investors is that they do not need to pay the full price of a share to invest in this expensive stock, they can start investing with as little as Rs 5,000.
Price reached $135 to $216 in three days
The listing of SpaceX shares took place on June 12. The company had fixed its IPO price at $135, but it started in the market at $150. Due to huge demand from investors, it closed at $161 with a gain of 19% on the very first day.
The rise did not stop here, on the second trading day on Monday, June 15, the stock jumped 19.6% to reach $192.50. After this, on Tuesday, June 16, the stock rose further by 12.40%, due to which its price closed at the historical level of $216.38. In this way, in just three days, a tremendous increase of 60.3% has been recorded in the shares as compared to the IPO and 44.3% as compared to the listing price.
Beats Microsoft-Amazon, creates new record in American market
On the basis of this historic surge on Tuesday, SpaceX became America’s fourth largest listed company. At one time during trading, the total market valuation (Market Cap) of SpaceX had become 2.94 trillion dollars. With this figure, Musk’s company left behind giant Microsoft ($2.93 trillion) and e-commerce king Amazon ($2.66 trillion). Now globally only Apple, Nvidia and Saudi Aramco are left ahead of SpaceX.
Opportunity to invest in less money, fractional investing makes the way easier
According to the current price, to buy an entire share of SpaceX in Indian currency, approximately Rs 19,000 (about $ 216) will be required. It may be difficult for small investors to invest such a large amount at one go, but the facility of ‘Fractional Investing’ of the American market has made this path easier.
What is fractional investing?
Under this, investors are not obliged to buy the entire shares of any company. You can also buy a small piece or part of the share. For example, if you invest just Rs 5,000 (about $55-60) in SpaceX, you will get about 25% of that stock.
This entire process works similar to the mutual fund SIP done in India, which is called ‘Dollar Cost Averaging’ (DCA) in the global market. In this, by investing a fixed amount every month, you get less share when the shares are expensive and more when they are cheap, due to which the average cost of investment remains balanced in the long run. With this facility, Indian investors can also become a part of big companies like Tesla, Nvidia, Amazon and Apple.
Risk amidst profits, options trading may increase volatility
In the stock market, where there is a possibility of bumper returns, there is always a risk there. Amidst this one-sided rise in SpaceX shares, it is important for investors to take some precautions. Options trading is going to start in this stock from June 17, due to which the volatility of its prices in the market may increase significantly.
Apart from this, in the coming time, as soon as the lock-in period of early and big institutional investors ends, the market may see huge selling for profit booking. Therefore, instead of investing big money in a hurry just seeing the initial surge, it would be wise to proceed after understanding the valuation of the company and your risk appetite.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsh advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
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