The August 4 SpaceX (NASDAQ: SPCX) quarterly earnings report proved a turning point for SPCX stock as the equity entered a rally that took it to $138.50 by press time in the Monday pre-market.
Indeed, after dropping roughly 52% from the $225.64 all-time high achieved just four days after the June 12 initial public offering (IPO) to approximately $108 early last week, Elon Musk’s newer public company rose nearly 25%, reclaiming its IPO price.
Thus, after weeks in the red, investors who managed to fill their order at the original $135 price and acquire $10,000 worth of SpaceX stock would now have $10.259.
Though the move, in the grand scheme of things, appears minor, it signals a stark reversal relative to early August. For example, the position would have been worth about $8,000 just before and just after the quarterly results were unveiled.
Why SpaceX stock is soaring today
Elsewhere, it is somewhat unclear what drove the latest SPCX stock rally that took the equity more than 15% higher in the Friday, August 7 session, though there are several contenders.
To begin with, SpaceX and Tesla (NASDAQ: TSLA) announced they were teaming up to invest nearly $17 billion in the Terafab advanced artificial intelligence (AI) semiconductor plant in Texas.
The move, together with the expected acquisition of the AI coding platform Cursor, could have driven investor optimism.
Similarly, traders might have regained confidence after last week’s unlocking of nearly 1 billion insider SPCX shares failed to trigger a crash.
Notably, however, the Friday rally was accompanied by retail investors turning net SpaceX stock sellers, indicating recent bullishness might be on shaky ground.
Lastly, despite the initial selloff, Elon Musk’s newer public company’s first-ever quarterly earnings showed stronger-than-expected results, with the exorbitant capital expenditures (CapEx) being the singular new major bearish catalyst.
Under the circumstances, it is possible that the Friday regular session and Monday pre-market rallies were a belated reaction to the figures, made possible by a lack of immediate insider selling.
