After markets close today, SpaceX (SPCX) will report its first quarterly earnings report. The results are not likely to mean much in the near term. SPCX stock quickly worked off a demand surplus after its IPO. The stock peaked at $225.64 and closed last week at $108.37.
Though rocket launches are a small part of the company’s business, expect the company to tout the addressable market upside in the next decade. Cautious investors will scrutinize xAI, which accounts for around 85% of the business. In particular, shareholders will ask about the profit potential in Cursor. SpaceX paid $60 billion in an all-stock transaction.
This month, SpaceX insiders have the option of selling their previously locked-up shares. If they do so, SPCX stock risks falling below $100. The stock price drop is not predictable, since it depends on the demand at the time that insiders sell shares.
They might delay selling shares. That would remove the share increase that bears largely expected would happen this month.
Investors also dumped AST SpaceMobile (ASTS), Rocket Lab (RKLB), and Planet Labs (PL). The short interest is in the double-digit percentage for those three firms. After SpaceX’s IPO, the 100 times price/sales ratio lifted their stock prices. When the stock slumped, sellers aggressively sold rocket ship names. Notice that Viasat (VSAT) did not sell off. Its short float is lower, at 9.38%.
