SpaceX jumps despite big stock unlock
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SpaceX's stock price rose Thursday, even as a large slug of new shares in the rocket-satellite-AI-social media conglomerate was freed up for trading.
Why it matters: SpaceX's June IPO was structured so that, initially, only a relatively small number of the company's shares — less than 5% — could be traded.
- That constrained supply likely helped support the stock through the company's high-profile debut as a publicly traded company.
Yes, but: The number of SpaceX shares that can be traded is set to surge over time, as various "lockup periods" that prevent some insiders, early investors or employees from selling are lifted.
- The first of these major lockup expirations came Thursday.
By the numbers: The unlocked shares — of which roughly 912 million could come to market if the people who own them choose to sell — will boost the amount of stock available for trading by more than 140%.
The latest: SpaceX shares actually had a great day Thursday, rising 6.1%, even as trading activity soared.
- More than 255 million shares changed hands, roughly four times as much trading as the average of the 10 previous sessions.
- Investors seemed to like the company's announcement that it would be building out an AI chipmaking factory in Texas.
What we're watching: More SpaceX shares are set to be unleashed for trading over the next year. Indeed, a big chunk of stock could be freed on the market in just two weeks, on Aug. 20.
- Some analysts have pointed to that overhang as a reason that the stock has slid sharply since its post-offering pop.
- The shares are down about 15% from their $135 offering price and 49% from the June 16 all-time intraday high of $225.64.
