SpaceX CRASHES below its IPO price as the hype unwinds

♪ ♪. JACK: IT FEELS WRONG TO BRAG ABOUT SPACEX BECAUSE IT'S ABOUT THE EASIEST PREDICTION EVER THE STOCK WOULD FALL BELOW THE IPO PRICE BUT WHAT WOULD HAPPEN NOW? WHAT'S EASY. P1 DOES HAS AN ABILITY TO GET PEOPLE TO PAY FOR POTENTIAL SPACEX, ABOUT $115 BUT WELL BELOW ITS 135 IPO PRICE IT'S IT'S ALL TIME HIGH. IT'S ONE OF THE WORST PERFORMING IPOS SINCE 2019. A BARRON'S ANALYSIS HAS FOUND. >> IS A BAD TIME FOR IPOS FREQUENCY DECLINE HAS COST ELON ABOUT 650 BILLION. SO LET'S JUST TAKE A MOMENT AND THINK ABOUT THAT. IT IS NOT BEEN VERY GOOD THERE ARE A FEW ISSUES. ONE THE STOCK OVERHANG THE INSIDERS WHO HAVE MADE SO MUCH MONEY AS A PRIVATE COMPANY ARE NOT ALLOWED TO SELL YET. IT'S ALWAYS AN OVERHANG FOR STOCKS THAT TROUBLE GETTING STARSHIP UP INTO THE THAT'S A VERY IMPORTANT PRODUCT. AND THERE'S JUST NEVER BEEN A CHEWING DOLLAR COMPANY THAT TRADES AT 4050 TIMES SALES SPACEX IS UNIQUE IN SO MANY WAYS IS THE ONLY TRULY DOLLAR COMPANIES IS ARBITRATED AT 40 OR 50 TIMES SALES. JACK: HOW SHOULD INVESTORS BE THINKING ABOUT IT NOW QUESTION. ?SO WE CALL IT 90 A STICK WITHOUT. IT IS A WONDERFUL COMPANY. WONDERFUL COMPANIES DO NOT ALWAYS MAKE WONDERFUL STOCKS I'M ALSO GOING TO REFERENCE META. WHAT IS AND MET A HAPPIER SPACEX CUSTOMER ABSOLUTELY NOTHING. AND THEN IT FELT 15% FOR THE FIRST FOUR MONTHS. SO 50% INVESTORS ARE A CREATURE OF HABIT. IF YOU WERE TO GET A CHANCE TO SNAP UP SPACE EXIT 65 OR $70 THAT WOULD BE A GOODBYE MORGAN STANLEY SAID TODAY AT $100 INVESTORS ARE ASSIGNING NO VALUE FOR A.I. IT MIGHT BE A LITTLE OVERSTATED. BUT THEY DO VERY GOOD BUSINESSES. [SCREAMING] TROUBLE IS THE GEM APPARATUS GOT A BARRON'S INVESTORS CIRCLE PICS YOU'VE GOT A VERY OLD-FASHIONED CONCEPT THAT PEOPLE MIGHT READ BOOKS. >> HEY I READ BOOKS I LIKE BOOKS. THE PIC THIS WEEK IS A WILDLY ONE OF THE WORLD'S LARGEST PUBLISHERS FOR THEY DO FOCUS ON WHERE THE ACADEMIC SIDE OF THINGS THAT IS KEY FOR THIS AS THIS ISMY COLLEAGUE DAN VICTOR S OUT THEY HAVE A VAST LIBRARY AND THEY ARE USING TO BUILD OUT A.I. ACTUALLY. THEY ARE DOING A LICENSING DEAL OF ALL OF THAT ACCUMULATED KNOWLEDGE WILL BE A GOOD BUY AND CERTAINLY COULD GO UP AS MUCH IS 45%. JACK: I'D RATHER THEY DO TEXT BOOKS AND READ IT. >> ELSE'S DON'T BUY SPACEX HE SAID BY THEIR SUPPLIER FOR TAKING A LOOK AT APPLIED AEROSPACE DEFENSE THAT'S A COMPANY THAT MAKES MONEY. IF YOU'RE WORRIED ABOUT SPACEX BUT YOU LIKE THE BUSINESS, THEIR SUPPLIER ACTUALLY IS PROJECTED TO DO ABOUT $150 MILLION IN EARNINGS THIS YEAR'S A IS APROFITABLE WAY TO GET OUT. SAVE OUR PICKS AND SHOVELS MIGHT MAKE A DECENT TRADE. ALL RIGHT GREAT IDEAS AS ALWAYS THANK YOU CHECK OUT THIS WEEK'S EDITION OF BARRON'S.COM WILL SEE IT NEXT WEEK ON A BARRON'S ROUNDTABLE