SpaceX (SPCX), Has it not bottomed out yet?...Jim Cramer "Beware of further decline"

▲ SpaceX (SPCX), Bear Market/AI Generated Image

Although SpaceX (SpaceX, SPCX) stock price has fallen below its IPO price, warnings against buying the dip have emerged. Analysis suggests that if over 900 million insider shares are released into the market in early August, additional downward pressure could increase.

According to crypto media outlet BeInCrypto on July 29 (local time), SpaceX stock price has fallen by approximately 29% over the past month. On the 28th, it dropped to its lowest point since listing, $107.01, before closing at $116.41, up 2.56%. This is below its IPO price of $135 and approximately 48% lower than its all-time high of $225.64 recorded on June 16.

The next shock is the scheduled release of insider lock-up shares on August 6. Approximately 911.5 million shares will become available for sale, more than doubling SpaceX's circulating share count. Concerns that a large volume of shares could be dumped all at once are weighing down the stock price.

Jim Cramer, host of CNBC's Mad Money, maintained a positive outlook on SpaceX's long-term growth potential but argued that the timing for buying should be delayed. Cramer said, "If you're going to invest a lot of money, you need to wait until insider selling pushes the stock price down further."

SpaceX will announce its first earnings report since listing on August 4. The market is watching its AI business, which has grown based on the multi-billion dollar computing contract signed between Anthropic and Alphabet. Cramer pointed out that the contract can be terminated with just 90 days' notice, making it difficult to predict new revenue. He assessed that even if strong earnings are reported, it might be difficult to withstand the impact of the scheduled lock-up release two days later.

[Key Article Summary]

-SpaceX stock price has fallen by approximately 29% over the past month, dropping below its IPO price of $135.

-On August 6, approximately 911.5 million shares will become available for sale, more than doubling the number of circulating shares.

-Jim Cramer emphasized that caution should be exercised regarding the risk of further decline due to the lock-up release, rather than the earnings announcement on August 4.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*