On Tuesday, SpaceX (SPCX) posted its first quarterly earnings report as a public company. That sets up the next headwind for shares. Insider lockup expires today, which will add more shares for trading. At the time of the IPO, the limited shares created excess demand, pushing SPCX stock to over $220.
SpaceX closed at $108.27, down by 13.61%. It erased the previous day’s gains after investors ignored bullish analyst ratings on the stock. SpaceX CEO Elon Musk said the company had a non-zero chance of posting $1 trillion in revenue.
Unfortunately, the insider lockup might overwhelm markets. Already, Nasdaq (QQQ) included SPCX stock in the index at higher prices. Passive retail investors will not add more shares in the weeks ahead.
Related Stocks
Investors covered their shorts against related firms like Rocket Lab (RKLB), Planet Labs (PL), and AST SpaceMobile. Their stock prices bounced back, albeit only slightly compared to their June highs.
Readers should also consider telecom stocks as related investments. SpaceX is looking to add land-based services to its satellite network. In response, Charter (CHTR) stock bounced higher, while American Tower (AMT) and Crown Castle (CCI) fell by around 4%-5% on Wednesday.
SpaceX’s plans to invest in a low P/E industry might scare shareholders. Its market capitalization is at a lofty $1.4 trillion. By comparison, Verizon (VZ) has a market cap of $193.1 billion. VZ stock pays a dividend that yields over 6%.
