Jim Cramer identified speculators as SpaceX's biggest IPO risk. Speculators are people who buy stocks. So one of the biggest risks to people buying a stock is people buying the stock.
This is like warning that the biggest risk to a buffet is hungry people. Or that the biggest risk to a casino is gamblers. Or that the biggest risk to a Waffle House at 2 AM is customers.
Cramer's concern is that these speculators might sell their shares shortly after the stock begins trading. Which is what happens with every IPO ever. People buy. People sell. Sometimes in that order.
The technical analysis here is bulletproof. A stock goes up when more people want to buy it than sell it. It goes down when more people want to sell it than buy it. And according to Cramer, the real danger is that people who buy might later decide to sell. Groundbreaking stuff.
SpaceX builds rockets that land themselves after launching satellites into orbit. They've revolutionized space travel and reduced launch costs by an order of magnitude. But sure, the biggest risk is Todd from Wisconsin panic-selling 47 shares on day two because he saw a red candle.
Here's what actually happens: institutional investors get their allocation months before retail touches it. They dump whenever they want. Retail buys at the top, watches it crater, then gets blamed for being speculators. The word speculator is just investor with consequences.
Cramer spent seventeen seconds worried about people buying and selling a stock. That's the entire concept of a stock market. Next he'll warn that the biggest risk to SpaceX is gravity.
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