economy
Jim Cramer warns SpaceX could soar to unsustainable levels after its debut
CNBC's Jim Cramer warned that overwhelming demand for SpaceX could send the stock to unsustainable levels after it begins trading.
TL;DR
- Jim Cramer fears SpaceX's stock could soar too high, too quickly after its IPO.
- The company set a fixed sale price of $135 per share, valuing it at $1.77 trillion.
- Extraordinary demand, described as four times oversubscribed, could push shares sharply higher.
- Cramer is concerned about inexperienced investors using market orders, potentially driving the stock to unsustainable levels.
- He pointed to recent IPOs like Figma and Cerebras, which initially rose then declined.
- Cramer believes the goal should be a controlled debut, not a spectacular first-day spike, to allow the stock to build value over time.