SpaceX investors continue to stay bullish on Elon Musk led satellite giant growth prospects, with shares rising around 36% in the last five trading sessions.
This surge come even as more than 911 million shares worth over $100 billion became eligible for trading as post-IPO lock-up restrictions expired.
With the latest rally, SpaceX share price has rose above its $135 IPO price, adding nearly $500 billion to the company's market capitalisation.
ALSO READ: SpaceX Shares Rocket 8% As Wall Street Eyes Turnaround In First Earnings Post Listing
SpaceX shares tumbled 14%, a day before the expiration, with reports majorly citing the company's first earnings report for the dip, indicating higher-than-expected AI linked capital expenditures. Despite this, the results also mentioned a major beat in revenue and a better-than-expected loss per share. These numbers were possibly a key factor contributing to the rally, according to a report by Bloomberg News.
The rocket company's shares have remained highly volatile in the stock market follwowing its record $86 billion IPO on June 11. The shares soared in the initial days and fell significantly, losing more than $1 trillion in market value earlier this month. Reports said that the lock-in expiry would likely be another concern, but the latest share price surge has now possibly defied worries of investors, the report said.
The report further mentioned that the shares trading lower than IPO price ahead of the lockup expiration would have likely helped the stock, with further gains expected in future expirations.
The company expirations were spread out in a nine-stage structure, with the August 6 lockup being the biggest one, as 911.5 million shares coming available. The next expiration is on Aug. 20, when around 319 million shares, or 7% of the total amount of stock will be released.
ALSO READ: SpaceX's AI Splurge Puts a Damper on Debut Earnings After IPO; Shares Fall 7%
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