The SpaceX stock has soared past its IPO price of $135 in the early trading hours today, which has gained notable traction from market participants. However, soon after, the SPCX stock price recorded a slight pullback but stayed above the brief $130 support.
Notably, the surge today comes despite significant selling pressure from retail investors on Friday. This massive selling comes just after 911.5 million IPO shares became available last week for selling.
SpaceX Stock Soars Past IPO Price
The SpaceX stock price traded near the flatline on Monday, and exchanged hands at $132.9 at the time of writing. Notably, the SPCX stock price has touched a daily high and low of $136.84 and $130.17, respectively.
Meanwhile, the surge past the $135 IPO price during early trading today has caught the eyes of market participants. The move has offered relief after the shares recently suffered a sharp decline from their post-listing peak.
However, the rebound comes after a major retail selling wave on Friday. Around 911.5 million IPO shares became available for trading last week. That increased the available supply and added fresh pressure to the stock.
According to Vanda Research, retail investors sold a net $4.5 million worth of SpaceX shares on Friday. Walter Bloomberg reported the development, noting that it marked the first net retail selling session since SpaceX’s June IPO.
The shift is important because retail traders had initially shown strong enthusiasm for the listing. SpaceX shares had surged about 67% above the $135 IPO price after debuting. However, those gains later faded sharply, and the SpaceX (SPCX) stock price subsequently traded more than 22% below its IPO level.
Can the SPCX Stock Rally Continue?
The latest rebound may appear surprising given the recent retail selling pressure. However, selling from one investor group does not necessarily signal a broader collapse in demand.
The release of hundreds of millions of IPO shares created an important supply overhang. Some early investors may have used the liquidity to lock in gains or reduce exposure.
That selling could explain part of the recent weakness in SpaceX stock price. The ability of SPCX stock to reclaim $135 suggests buyers may still be willing to absorb that supply. In addition, SpaceX’s revenue and earnings performance have supported the bullish case among some investors.
However, the company’s massive artificial intelligence (AI) spending plans have also created concerns. Heavy investment could pressure cash flows and raise questions about near-term returns.
Despite that, Wall Street coverage has provided support for the bullish argument. Argus Research recently initiated coverage of SpaceX stock with a “Buy” rating. Besides, Morgan Stanley has also maintained its $300 price target for SpaceX (SPCX), suggesting its long-term confidence in the stock.
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