Why Intuitive Machines Stock Crashed Today

When you get close down to it, I was some right and right astir the SpaceX (NASDAQ: SPCX) IPO.

Right, due to the fact that I predicted SpaceX IPO fever could thrust abstraction stocks higher. Indeed, shares of lunar landing institution Intuitive Machines (NASDAQ: LUNR) gained 71% implicit the past 4 months.

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That's the bully news. I was besides right, unfortunately, astir what would hap connected the IPO date. And this successful a nutshell is wherefore Intuitive Machines banal fell 10% done 11 a.m. ET today.

Three scenarios for SpaceX and abstraction stocks

Four months ago, I ran down 3 theories for however the SpaceX IPO could perchance play out, some for SpaceX itself and for the different abstraction stocks successful this nascent industry. Briefly, these potentialities went similar this:

• Option 1: SpaceX IPO fever could marque abstraction stocks much popular, driving up their banal prices.

• Option 2: SpaceX could marque abstraction stocks not named SpaceX less popular, if they suffered by examination to SpaceX, which is truthful overmuch bigger and much profitable than SpaceX's competitors.

• Or Option 3: Investors wanting to bargain SpaceX banal mightiness merchantability shares of different abstraction stocks to rise currency to bargain SpaceX instead.

What's adjacent for Intuitive Machines

The information that Intuitive Machines banal went up truthful overmuch implicit the past 4 months means I was close astir Option 1. The information that Intuitive Machines banal is selling disconnected contiguous -- the aforesaid time investors are presumably preparing to wage for their caller SpaceX IPO shares -- powerfully suggests I was close astir Option 3.

And Option 2? This remains to beryllium seen. SpaceX's IPO prospectus made wide SpaceX isn't astir arsenic profitable arsenic we erstwhile believed. Bigger isn't needfully better, and tiny Intuitive Machines could inactive beryllium a victor if it turns profitable earlier SpaceX does.

Should you bargain banal successful Intuitive Machines close now?

Before you bargain banal successful Intuitive Machines, see this:

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