TV host Jim Cramer on Wednesday said that Elon Musk-led Space Exploration Technologies Corp. (NASDAQ:SPCX) could not sustain its “meme stock” status following its decline.
SpaceX’s Meme Stock Status Could Not Be Sustained
In a post on X, Cramer expressed his views on SpaceX’s decline following days of sizeable gains in value. “SpaceX could not maintain its meme status,” the TV host said. He added that the stock was unable to “sustain the walk up.”
In a separate post, Cramer also outlined that SpaceX has a “two-way market” now that both buyers and sellers were trading the stock. “Can’t meme it; too many sellers,” he said.
SpaceX’s Meme Stock Warnings
Multiple analysts had issued warnings about SpaceX becoming a meme stock following its rapid growth, with Charlie Billelo, who is an executive at investment firm Creative Planning, cautioning against SpaceX's rise that echoed 2021’s meme stock era.
Investor Gary Black of The Future Fund LLC also said that SPCX could be losing its “meme stock” status, with options trading providing investors with a new way to bet against the stock.
However, SpaceX's rally has also resulted in CEO Musk becoming worth $1.3 trillion and surpassing the combined net worths of multiple billionaires like former Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) CEO Larry Page, as well as Sergey Brin, Amazon.com Inc. (NASDAQ:AMZN) founder Jeff Bezos in the process.
According to Benzinga Edge Rankings, SpaceX provides a favorable price trend in the Short, Medium and Long term.
Price Action: SpaceX shares were up 1.75% at $195.17 during the after-hours trading session on Wednesday.
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