SpaceX draws retail investors despite fall in shares post earnings
Retail investors flocked to SpaceX shares on Wednesday, buying the dip as the stock fell about 12% following the company’s first earnings report since going
Retail investors flocked to SpaceX shares on Wednesday, buying the dip as the stock fell about 12% following the company’s first earnings report since going public, according to a Reuters report.Individual traders purchased a net $22.7 million worth of SpaceX shares in the first hour of trading, the third-highest opening-hour total in the 37 sessions since its market debut, the report said citing Vanda Research.“This tells us that retail dip-buying has not stepped back after the earnings sell-off — they’ve become even more opportunistic,” Vanda Research said in a note.The financial data firm said Wednesday was on track to become SpaceX’s second-strongest day of retail net buying since its debut if the pace continued.
The record was set on June 16, when net purchases reached $144.6 million.SpaceX has not recorded a single day of net retail selling since its June 12 IPO, the largest in US history, which priced the stock at $135 per share. The shares fell as much as 12.9% and slipped below $110 in early trading, less than two months after the company’s blockbuster debut.The sell-off came as investors questioned how long profits from Starlink could continue funding SpaceX’s costly investments in data centres and Nvidia chips.
The company said its AI revenue more than tripled from a year earlier and announced several new cloud-computing agreements, even as quarterly AI-related capital expenditure climbed to $15.8 billion.Overall trading remained robust, with more than $10.5 billion worth of SpaceX shares changing hands as of 11:47 a.m. ET, according to LSEG data.SpaceX was the most purchased US stock among retail investors on Wednesday, according to Vanda, followed by chipmaker Advanced Micro Devices.
AMD shares were last down 6.5% following its quarterly earnings report.
The BriefWire