SpaceX lockup expiry to test retail’s iron stomach
SpaceX's stock market debut in June was the largest initial public offering in history, epitomizing the AI mania that has spread like wildfire across the investment community, especially among re...
SpaceX, a company led by Elon Musk, made history with its IPO in June, becoming the largest initial public offering to date. Retail investors played a significant role in this, making up 20% of the shares. However, the stock's value has since dropped, falling 50% below its peak and 20% below its June price. This could indicate how retail investors are feeling about the AI sector.
The company's recent earnings report also contributed to a 14% drop on Wednesday. This rollercoaster ride is reflective of the broader tech market volatility over the past two months, with major indices like the S&P 500 software index and the Philadelphia semiconductor index also experiencing significant declines. The impact of leveraged ETFs, which can amplify both gains and losses, has been particularly pronounced, with retail investors potentially facing substantial paper losses.
Despite the turbulence, many retail investors remain bullish, particularly on Big Tech, and have been actively buying stocks like SpaceX amid their post-earnings sell-off. This suggests that investors see potential long-term value in aggressive AI investments, rather than viewing it as a reason to sell.
Written by urgent.news from Gulf Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
