This Tiny Space Stock Just Tripled in 2 Weeks — and Then Fell. Is It Still a Buy?

I am a value investor. That means two things: First and most obviously, I like stocks that sell for reasonable prices relative to their growth prospects. And second, I’m extremely suspicious of buying into hot growth stocks that are “going up” a lot — stocks like Intuitive Machines (NASDAQ: LUNR).

Why Intuitive Machines stock is going to the moon

Two weeks ago, if you recall, Intuitive Machines launched a Nova-C class lunar lander named Odysseus on a course to the moon. On Thursday last week, Odysseus conducted a mostly successful soft landing on the moon — the first American spacecraft to accomplish this feat in more than 50 years.

No sooner had this news been announced than Intuitive Machines stock exploded 25% higher. And now, I’m giving serious thought to buying Intuitive Machines stock for myself.

Value investor’s dilemma

Why would I consider doing this — and seemingly breaking a cardinal rule of value investing in the process? Well, let me explain first why I might not buy Intuitive Machines stock.

Intuitive Machines went public in the middle of the space SPAC frenzy back in February 2023. IPO’ing at $10 a share, the stock surged past $80 in a matter of days, before turning tail and giving back all its gains. By April 2023, the stock was back trading below its IPO price — and didn’t return to that IPO price until just this month.

But what an exciting month it has been!

From Feb. 7, about a week before the launch, to Feb. 21, a few days after the launch took place, Intuitive Machines stock roughly tripled in price, surging from just $3.50 per share to well over $10. Pulling back just a bit as investors held their breath and awaited the landing attempt, Intuitive Machines surged ahead 16% on Friday, closing the week just below $10 a share. And then on Monday, the stock gave back a lot of those gains, falling to just over $6.25.

Story continues

At its last recorded stock price, Intuitive Machines sells for less than 2 times trailing sales, which sounds cheap. Problem is, the company is still racking up operating losses (negative $37 million over the last 12…

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