Retail investors have turned net sellers of SpaceX shares for the first time since the company’s June initial public offering, signalling a notable change in sentiment following weeks of aggressive buying during the stock’s volatile post-IPO period.
Individual investors sold a net $4.5 million of SpaceX shares on August 7, according to data from Vanda Research reported by Reuters. The move ended a buying streak that had continued since SpaceX began trading on June 12.
The shift comes after an exceptionally volatile period for the newly listed company. SpaceX shares initially surged following their $135 IPO price, reaching approximately $225.64 at their June peak before subsequently losing much of those gains.
Retail investors had repeatedly used sharp declines as buying opportunities. On August 5, individual investors bought heavily as the stock fell 13.6%, making it one of their largest single-day purchases since the IPO. The subsequent move into net selling suggests some investors may now be reassessing the risk and reward of holding the shares.
Concerns surrounding SpaceX’s substantial investment in artificial intelligence have also influenced sentiment. While the company has reported rapid progress from its AI investments, investors remain focused on the enormous capital requirements associated with expanding its AI and data-centre ambitions.
The stock also received a boost from the expiration of an early post-IPO lock-up period, which increased the number of shares available for trading. SpaceX shares subsequently rebounded sharply, helping the stock move back towards its $135 IPO level.
The $4.5 million retail outflow remains relatively small compared with the scale of earlier buying. Retail investors purchased as much as $144.6 million of SpaceX shares in a single day shortly after the IPO.
Nevertheless, the reversal is significant. After consistently buying the stock through its early turbulence, individual investors are now showing signs of caution as SpaceX enters a new phase as a publicly traded company.