SpaceX Stock (SPCX) Falls Nearly 50% From June High as Analyst Upgrades to Buy
Key Takeaways
- •SPCX has dropped nearly 50% from its June 16 high after a post-IPO rally.
- •The stock’s pullback has been attributed to profit-taking, valuation concerns, and upcoming lockup expirations.
- •Lockup expirations may allow early investors or insiders to sell shares, potentially increasing market supply.
- •TipRanks top-rated analyst Mike Zaccardi upgraded SPCX to Buy despite the steep decline.
- •The company’s August 4 earnings report is being watched for updated results and management commentary.
SpaceX stock (SPCX) has declined nearly 50% from its June 16 high following a strong post-IPO rally, according to CoinPedia.
The pullback has been attributed to profit-taking, valuation concerns, and upcoming lockup expirations. Lockup expirations are closely watched after IPOs because they can allow early investors or insiders to sell shares once restrictions end, potentially increasing available supply in the market.
Despite the steep decline, TipRanks top-rated analyst Mike Zaccardi upgraded the stock to Buy. Zaccardi said similar pullbacks have historically created long-term opportunities. He also said much of the risk tied to lockup expirations appears to already be reflected in the stock price.
The company’s August 4 earnings report is being viewed as a potential catalyst for a recovery, as investors look for updated financial results and management commentary following the sharp retreat from the June high.