SpaceX Shares Rally Nearly 7% After Defying Fears Over Massive Post-IPO Lockup Expiration

NEW YORK — Shares of Space Exploration Technologies Corp. rose sharply in morning trading Friday, extending a rebound that began a day earlier when the stock absorbed one of the largest post-initial public offering lockup expirations in recent market history without a sustained selloff.

By midmorning Eastern time, SpaceX stock, trading under the ticker SPCX, stood at $122.58, up $7.66 or 6.67 percent. The advance built on Thursday's 6.14 percent gain that closed the session at $114.92. That earlier rally came as approximately 911.5 million previously restricted shares held by employees and early investors became eligible for sale, expanding the potentially tradable float significantly.

The company, founded by Elon Musk, completed its initial public offering on June 12, pricing shares at $135 and raising tens of billions of dollars in what ranked among the largest U.S. listings on record. Shares opened higher and later climbed as high as $225.64 before retreating in subsequent weeks amid broader technology sector volatility, concerns over valuation and the approaching share unlocks. By early August the stock had traded near its post-IPO lows around $105 before the latest recovery.

On Aug. 4 SpaceX reported its first quarterly results as a public company. Second-quarter revenue reached $7.81 billion, up 92 percent from $4.07 billion a year earlier and ahead of analyst expectations. The net loss narrowed to $541 million from $1.01 billion in the year-earlier period. Adjusted EBITDA rose to $3.54 billion from $1.21 billion.

The Connectivity segment, driven primarily by the Starlink satellite broadband service, generated $4.29 billion in revenue and $1.66 billion in operating income. The AI segment contributed $2.56 billion in revenue, reflecting growth in cloud infrastructure services and related subscriptions, though it recorded an operating loss. The traditional Space segment, encompassing launch services, posted $962 million in revenue and an operating loss.

SpaceX ended the quarter with approximately $100 billion in cash, cash equivalents and marketable securities and a backlog of $47.5 billion. The company had earlier closed its IPO, generating about $85.7 billion in net proceeds, and completed a $25 billion investment-grade bond offering.

The Aug. 6 lockup release represented the first major tranche of restricted shares becoming available, estimated at roughly 20 percent of eligible insider holdings. Market participants had anticipated potential selling pressure that could weigh on the share price. Instead, volume was elevated and the stock closed higher, suggesting absorption of supply without a disorderly decline. Additional staggered releases are scheduled in the coming months, including further portions through October, a larger release after third-quarter results and the remaining lockup expiration in December.

Analysts and investors continue to weigh the company's growth trajectory against its valuation and capital intensity. Starlink subscriber expansion and government contracts, including multi-year awards for Starshield, support the Connectivity business. Launch cadence remains high, with Falcon 9 vehicles achieving frequent reuse. At the same time, heavy investment in Starship development, manufacturing capacity and AI-related infrastructure has kept overall profitability negative on a net-income basis even as adjusted metrics improved.

The stock's path since the IPO has been volatile. After the early peak, shares declined more than 50 percent from the high at points, reflecting both profit-taking and questions about how quickly the company can convert rapid top-line growth into consistent bottom-line results. The first earnings report and subsequent lockup test provided the market with fresh data points on operational momentum and the willingness of existing holders to sell into strength or hold.

Broader market conditions have also played a role. Technology and growth-oriented stocks have experienced swings tied to interest-rate expectations, artificial-intelligence spending scrutiny and macroeconomic data. SpaceX's combination of aerospace, satellite communications and expanding compute offerings positions it at the intersection of several high-profile themes, amplifying both upside interest and downside sensitivity.

Trading volume on the days surrounding the lockup and earnings has been substantial, reflecting active institutional and retail participation. Options activity has also been notable as traders positioned around key price levels and the unlock event. The average analyst price target remains well above the current trading range according to consensus data, though individual estimates vary widely, underscoring differing views on long-term execution risk and competitive dynamics in launch, broadband and AI infrastructure.

SpaceX continues to pursue vertical integration across manufacturing, launch operations and satellite deployment. The company has highlighted the scale benefits of its approach in recent communications with investors. Government work, commercial satellite deployments and enterprise connectivity deals form the core of near-term visibility, while longer-horizon projects such as next-generation vehicles and expanded AI capacity represent both opportunity and spending commitments.

Friday's early gains kept the focus on whether the post-lockup stability can persist as additional shares become eligible in coming weeks. Investors will monitor subsequent trading volumes, any commentary from management and the pace of operational milestones for signals on demand for the stock. The next scheduled earnings report is expected to provide further insight into the trajectory of the three reported segments and capital allocation priorities.

As a newly public company with a market capitalization still measured in the trillions of dollars even after the post-IPO decline, SpaceX remains one of the most closely watched names in the technology and aerospace sectors. The combination of rapid revenue growth, substantial cash reserves and ongoing investment programs continues to shape the debate over its valuation and the durability of recent price support.

The morning advance on Aug. 7 added to the evidence that the initial wave of unlocked shares was absorbed without triggering a prolonged decline, at least in the immediate aftermath. Whether that pattern holds through the remaining unlock schedule will be a central question for market participants in the months ahead.