Did you hear Lucid Motors went public?
My nephew and I have been waiting for this to happen.
We figured it was only a matter of time.
But, rather than running right out and buying it, here is the advice I gave him:
When it comes to IPOs, the price tends to increase sharply right after the initial offering, then decrease to an amount closer to what the stock is actually worth (disclaimer: in the current market, it seems all bets are off so we will just have to see what happens).
Investing term of the day:
IPO- Initial Public Offering- this is when a company that was private lists its shares on the stock market exchange for the first time so the general public can purchase it.
Lucid went public July 26, 2021. However, if you look at the NASDAQ chart, it appears Lucid stocks were being traded as early as January 2021. As it turns out, the company Lucid was merging with was on the NASDAQ as CCIV. CCIV automatically converted to LCID after the merger took prices. CCIV was trading at $10/share in January 2021. It went up to $58/share in mid-February. I am assuming this is when the intent to merge was announced. On July 26, 2021, the price was $26.83/share and was at $22.63 when the market closed today.
Since LCID seems to be on a steady decline I, personally, am going to wait just a little longer to purchase my shares.
You may decide to invest now… or not at all.
But, I am not going to make the same mistake I did with Tesla back when I first said I wanted to invest in it. If I had invested $100 back then, I would have almost $12,000 today.
If this all sounds like a foreign language, please hop on over to facebook and sign up for my 5-day Effortless Investing workshop. It is starting Monday, August 9, 2021, and will take you from knowing absolutely nothing about stocks to being ready to make your first online stock purchase with confidence.
Disclaimer: I used LCID as an example. This is by no means an endorsement or encouragement to purchase LCID stock. Please use your due diligence and discernment when choosing to purchase a stock. And never purchase more than you can afford to lose. Stocks do come with a risk and companies can go bankrupt.