Now Reading: SpaceX shares rebound 7% after 13.6% sell-off
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SpaceX shares rebound 7% after 13.6% sell-off
SpaceX shares rose 7% to $115.75 on Thursday, 6 August, recovering part of a 13.6% fall in the previous session. The stock remains below its IPO price after rising above $225 within…
The Story in Brief
SpaceX shares rose 7% to $115.75 on Thursday, 6 August, recovering part of a 13.6% fall in the previous session. The stock remains below its IPO price after rising above $225 within days of its June listing.
The sell-off followed disclosure of $18.4 billion in capital spending during the June quarter, six times the year-earlier figure, with much directed towards AI infrastructure. SpaceX’s AI business reported $2.6 billion in revenue but remained loss-making. Thursday also saw more than 911 million shares, worth nearly $100 billion, become eligible for trading. Further unlocks could release 319 million shares on 20 August and about 700 million each in September and October, according to the prospectus cited by LiveMint.
The Indian Opinion
The easy narratives are that a one-day rebound proves investor confidence, or that heavy AI spending alone makes SpaceX a bad investment. Neither follows from these figures. The stock is still below its IPO price, while the AI unit is losing money despite rapid revenue growth. The immediate test is whether the newly tradeable 911 million shares bring sustained selling, and whether AI losses narrow in the next earnings report.
Sources (2): ndtvprofit.com, livemint.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
