SpaceX loses $1.2 trillion in market value in post-IPO slump
What's the story
SpaceX has witnessed a massive decline in its market capitalization, losing over $1.2 trillion since hitting a peak price of $225.64 in June. The fall is almost equal to the market value of Elon Musk's other company, Tesla, whose shares are also trading near one-year lows. On Monday, SpaceX shares fell for the 13th time in 16 sessions, ending at $113.5 after a drop of over 1%.
Future outlook
Potential sell-off on the horizon
SpaceX's first earnings report since its IPO could trigger a sell-off, allowing investors to offload 20% of their eligible locked-up stock.
This amounts to as much as 911.5 million shares on the second full trading day after the first earnings release date, August 6.
"I don't think the lock-up on SpaceX will be as bad as everyone fears," said Charles Moon, a tech and momentum specialist for Prosper Trading Academy in Chicago.