SpaceX ($SPCX) shares rose 6.14% Thursday to $114.92 despite a major post-IPO lockup expiration that made 911.5 million additional shares eligible for sale. The rebound surprised investors who had expected the huge increase in available stock to trigger heavier selling pressure.
The newly unlocked shares were worth roughly $104.8 billion at Thursday’s closing price. The release expanded SpaceX’s potentially tradable share pool from 4.9% to 11.8% of total shares.
Instead of falling further, the stock bounced back from Wednesday’s 13.6% post-earnings decline. Post Oak Group’s Jon Taves said the relative stability supported the view that many investors see SpaceX as a long-term holding.
However, Thursday’s unlock represents only the beginning of a much larger increase in available shares. Additional 7% tranches are expected to unlock every 15 to 20 days through October.
Another 28% of eligible shares will become available after third-quarter earnings, followed by the full 180-day lockup expiration on Dec. 8. CFRA analyst Keith Schneider warned that future insider selling could continue putting pressure on the stock.
Near-term concerns also include SpaceX’s massive $18.4 billion quarterly capital spending. Bulls, meanwhile, remain focused on improving Starlink profitability and potential growth from the company’s artificial intelligence business.
Technical analysts are watching $125 as an early sign that selling pressure may be easing. A move above SpaceX’s $135 IPO price would be a more meaningful signal that the stock is breaking out of its broader downtrend.
The newly unlocked shares were worth roughly $104.8 billion at Thursday’s closing price. The release expanded SpaceX’s potentially tradable share pool from 4.9% to 11.8% of total shares.
Instead of falling further, the stock bounced back from Wednesday’s 13.6% post-earnings decline. Post Oak Group’s Jon Taves said the relative stability supported the view that many investors see SpaceX as a long-term holding.
However, Thursday’s unlock represents only the beginning of a much larger increase in available shares. Additional 7% tranches are expected to unlock every 15 to 20 days through October.
Another 28% of eligible shares will become available after third-quarter earnings, followed by the full 180-day lockup expiration on Dec. 8. CFRA analyst Keith Schneider warned that future insider selling could continue putting pressure on the stock.
Near-term concerns also include SpaceX’s massive $18.4 billion quarterly capital spending. Bulls, meanwhile, remain focused on improving Starlink profitability and potential growth from the company’s artificial intelligence business.
Technical analysts are watching $125 as an early sign that selling pressure may be easing. A move above SpaceX’s $135 IPO price would be a more meaningful signal that the stock is breaking out of its broader downtrend.