SpaceX Investors, Mark Your Calendars: A Massive Stock Lockup Expiration Is Coming
SpaceX stock is likely to remain volatile in the near term.
A massive stock lockup expiration is approaching for SpaceX, a company that has become the largest IPO on record. This expiration could potentially impact the stock price, as it may cause downward pressure if insiders sell their shares in large quantities. SpaceX has experienced this challenge before, yet it has managed to perform well in the past through such events.
The next lockup expiry date is looming, with 1.3 billion new shares becoming eligible for sale just two days after SpaceX reports its third-quarter earnings on October 20th. However, it remains to be seen if the stock will decline significantly, as it would depend on the overall market impact and SpaceX's third-quarter results. While SpaceX's stock has declined slightly since its IPO, the company has shown strong growth and progress in various areas, such as revenue growth, a decrease in net loss, and successful test flights of its Starship rocket.
Despite this, the high valuation of the stock and the need to exceed expectations may deter long-term investors from purchasing SpaceX shares at the current price.
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