SpaceX, the rocket company founded by Elon Musk, saw retail investors turn net sellers on Friday, marking the first such instance since the company’s initial public offering (IPO) in June. According to Vanda Research data, mom-and-pop traders sold a net $4.5 million in SpaceX shares on August 7.
Market Analysis
A market analyst at eToro noted that the shift from buying to selling is rarely about one catalyst, but rather a mix of profit-taking, position fatigue, and investors reassessing the risk-reward. The analyst added that Friday’s selling was particularly interesting, as retail investors turned net sellers while the shares were rebounding strongly and trading back around the IPO price.
The reversal in sentiment tracks a broader unwind in SpaceX’s share price, which surged as much as 67% above its $135 IPO price in June before giving back all of the gains and falling more than 22% below its debut price in August. Shares have closed below the IPO price every day since July 16 and were up 2.4% to $136.3 in premarket trading on Monday.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
