#EarningsObserver: Short Covering is the Focus for SpaceX?
I'm Brother Ci. SpaceX rebound after lock-up expiration is clear.
On Aug 6, first batch unlocked ∼911.5M shares. Price didn't fall, it rebounded. Shorts still active, 250M+ shares shorted, 16% of tradable shares. Options volume expanded, game intensified.
Two forces behind rebound:
1. Selling pressure was not fierce. Founder's shares locked till 2027, early investors don't want to cut losses at $100-$110. Unlock selling was absorbed. 2. Buyers entering. But 16% short ratio means bearish power remains. If price rises more, short covering will be extra fuel.
Earnings not bad, revenue up YoY, losses narrowing. But high AI capex is double-edged. Terafab started, Musk building chip capacity for long-term AI demand.
Neither unlock nor earnings crushed price. Short covering is biggest short-term narrative. With 16% short, 10% rise can force heavy covering. But unlock is not one-time, more windows ahead.
Crypto transmission: SpaceX rebound + Palantir beat shows market pays for future growth narrative despite high capex. SanDisk fell because guidance was not impressive enough. SpaceX rebound on unlock day is market looking at long-term AI aerospace infra. Storage pressure is guidance issue, not end of AI storage demand.
Next: Watch if short covering can keep driving price and how next unlock selling unfolds. In this round, short covering is obvious factor, options game is hidden line. Direction is clear; follow or not is up to you.
Brother Ci finished. Think it over.
$BTC $ETH $SNDK
I'm Brother Ci. SpaceX rebound after lock-up expiration is clear.
On Aug 6, first batch unlocked ∼911.5M shares. Price didn't fall, it rebounded. Shorts still active, 250M+ shares shorted, 16% of tradable shares. Options volume expanded, game intensified.
Two forces behind rebound:
1. Selling pressure was not fierce. Founder's shares locked till 2027, early investors don't want to cut losses at $100-$110. Unlock selling was absorbed. 2. Buyers entering. But 16% short ratio means bearish power remains. If price rises more, short covering will be extra fuel.
Earnings not bad, revenue up YoY, losses narrowing. But high AI capex is double-edged. Terafab started, Musk building chip capacity for long-term AI demand.
Neither unlock nor earnings crushed price. Short covering is biggest short-term narrative. With 16% short, 10% rise can force heavy covering. But unlock is not one-time, more windows ahead.
Crypto transmission: SpaceX rebound + Palantir beat shows market pays for future growth narrative despite high capex. SanDisk fell because guidance was not impressive enough. SpaceX rebound on unlock day is market looking at long-term AI aerospace infra. Storage pressure is guidance issue, not end of AI storage demand.
Next: Watch if short covering can keep driving price and how next unlock selling unfolds. In this round, short covering is obvious factor, options game is hidden line. Direction is clear; follow or not is up to you.
Brother Ci finished. Think it over.
$BTC $ETH $SNDK