SpaceX (SPCX), Starship Flew But Stock Price 'Plummeted'...Burdened by a Flood of Sell Orders

▲ SpaceX (SPCX), Stock Price Decline/AI Generated Image

SpaceX (SPCX) succeeded in Starship's first Earth orbital flight and satellite deployment test, but its stock price actually fell. It appears that 328 million shares of potential sell-off volume due to the lifting of the lock-up period and the sale of executive stakes suppressed the stock price increase.

According to BeInCrypto, a cryptocurrency and financial media outlet, on September 28 (local time), SpaceX's stock price closed down 0.93% at $147.29 despite news of a successful test flight. Starship reached an altitude of approximately 273km (170 miles), successfully deployed 26 next-generation Starlink V3 satellites, re-entered the atmosphere, and safely landed in the Pacific Ocean. Despite demonstrating its first commercial cargo transport capability after 13 test launches, the market's reaction was lukewarm.

Market experts diagnosed that supply and demand issues in the stock market exerted greater downward pressure on the stock price than the technical achievement. This is due to growing concerns that a massive volume of sell orders could flood the market as 328 million shares, which had been locked up since the IPO on September 24, were released from the lock-up period. Furthermore, the sale of $52.5 million worth of shares by President Gwynne Shotwell through a pre-planned transaction also acted as a factor dampening investor sentiment.

In the derivatives market, whether the $150 level can be recovered is emerging as a short-term turning point. According to options market data, approximately 22,700 call option contracts are concentrated at the $150 strike price for the October 2 expiry, while put options are concentrated around the $140 level. Wall Street financial firms also have differing views. MoffettNathanson issued a neutral opinion with a target price of $142, but the average target price of all securities firms is $222.42, still expecting a significant upside.

Debates surrounding long-term corporate valuation are also ongoing. Optimists, such as Cathie Wood, CEO of ARK Investment Management LLC, believe that if Starship's fully reusable system is established, its current market capitalization, approaching $1.75 trillion to $2 trillion, would even be undervalued. However, it is pointed out that a short-term process of absorbing sell orders is inevitable until market doubts about the burden of large cash-consuming artificial intelligence (AI) businesses and the ability to turn profitable are resolved.

[Article Key Summary]

-SpaceX succeeded in Starship's first orbital flight and Starlink satellite deployment, but its stock price fell by 0.93%.

-The release of 328 million shares due to the lifting of the lock-up period and President Shotwell's sale of $52.5 million worth of shares acted as negative factors.

-While Wall Street's average target price remains at $222.42, breaking through the concentrated $150 call option zone is considered a key challenge.

*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.*