SpaceX shares closed at $113.50 on July 27, down 1.36% for the session. Since reaching a record high of $225.64 per share in June, the company's total market value has evaporated by more than $1.2 trillion.
This decline in market capitalization is roughly equivalent to the entire current market value of Tesla Inc, whose stock has also fallen to near one-year lows. Trading data shows that SpaceX shares have dropped in 13 of the last 16 trading sessions.
In the options market, put options accounted for the majority of the $442 million in total premium traded on the day, signaling cautious investor sentiment regarding the stock's future performance. Meanwhile, some retail investors are still heavily purchasing long-dated call options, betting on a rapid price rebound.
Market analysts believe that the company's first earnings report since its initial public offering, scheduled for release next week, will be a critical factor influencing the stock's direction. According to established rules, on the second full trading day after the earnings release (August 6), eligible early investors will be permitted to sell up to 20% of their locked-up shares, which could amount to a maximum of 911.5 million shares being released.
Charles Moon, a technology and momentum market expert at Chicago-based Prosper Trading Academy, noted that both Washington and Wall Street are currently repricing and penalizing artificial intelligence and tech sectors that have high capital expenditure. Moon added that while the upcoming large-scale lockup expiry may not necessarily trigger a catastrophic sell-off, it is also unlikely to provide support for the already weak share price.
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