SpaceX shares rose 3.08% on Tuesday, ending a seven-session losing streak that had seen the stock drop to $119.85, more than 45% below its post-IPO peak. The increase brought the share price to $123.54, giving the company a market capitalization of $1.63 trillion. The previous decline wiped out approximately $425 billion from SpaceX's market value, according to data compiled by Bloomberg.
Key Details
The stock's recent struggles are attributed to a broader sell-off in artificial intelligence-related stocks and the cancellation of a Starship rocket launch due to an engine issue. SpaceX, which trades under the ticker SPCX on the Nasdaq, went public on June 12 at $135 per share and reached a high of $225.64 shortly thereafter, pushing its valuation above $2.6 trillion.
Investors are closely watching the upcoming quarterly earnings report scheduled for August 4, which will cover the second quarter ended June 30. The company reported a loss of $4.3 billion last year in its IPO filings. Additionally, SpaceX is set to experience one of the largest share unlocks in capital markets history, with restrictions on approximately 911.5 million shares expiring on August 6, just two days after the earnings release. This could lead to significant volatility in the stock price as insiders may be able to sell shares valued at up to $116 billion, as reported by Bloomberg.
Background
Cathie Wood, founder of ARK Invest, expressed optimism about SpaceX, stating it could become
the most important company in global history
due to its potential in global telecommunications through its Starlink project. ARK Invest has been increasing its stake in SpaceX, purchasing approximately $129 million worth of shares over the past week, according to Investor’s Business Daily. SpaceX now accounts for about 8% of the ARK Space & Defense Innovation ETF (ARKX), making it the fund's largest holding.
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The rebound in SpaceX shares could influence related ETFs and stocks in the aerospace and technology sectors, particularly those tied to artificial intelligence and space exploration. Investors may react to the upcoming earnings report and share unlock, which could increase volatility in the stock.
Watch for SpaceX's quarterly earnings report on August 4, which will provide insights into the company's financial health amid significant market changes.