Representative Dan Meuser recently made a significant investment in SpaceX (NASDAQ: SPCX), purchasing shares valued at up to $50,000 on June 16. By early July, Meuser's investment appears to be experiencing significant losses, as detailed in a filing from July 2.
At the time of purchase, SpaceX's stock reached an all-time high of $225.64, but has since seen a marked decline. As of July 6, SPCX shares were trading at $163.58, reflecting a 0.98% increase from the previous close of $162. If Meuser indeed bought at the June 16 peak, his investment could have depreciated by approximately $13,752, a loss of around 27.5%, bringing its value down to around $36,248.
Investment Timing Concerns
Representative Meuser's potential losses would have been less severe had his timing coincided with the day's low of $199.98. In this scenario, his position might have decreased by about $9,100.91, leaving him with a balance of approximately $40,899.09, or an 18.2% loss.
Speculation arises regarding whether Meuser's investment will recover this month. Starting July 7, SpaceX stock is set to join the Nasdaq-100 index, which historically leads to increased visibility and buying pressure from index funds. These factors could favorably influence the stock price.
Long-Term Outlook
Despite the current downturn, the anticipated inclusion of SpaceX in the Nasdaq-100 may provide tailwinds for the company's stock. It is worth noting that this investment marks Meuser's first stock acquisition in about six years, excluding bond purchases, the last equity transaction being on March 30, 2020. The significant capital invested may reflect his belief in the company's future potential, despite the present volatility in prices.
