CNBC’s Jim Cramer remains optimistic about SpaceX’s (NASDAQ:SPCX) long-term prospects but urged investors to wait before taking a large position, warning that an Aug. 6 insider-share release could add selling pressure after the company’s first earnings report.
Cramer Warns Lockup Could Pressure SpaceX Shares
"If you’re looking to buy SpaceX … I’m begging you if you want to go big to at least wait for the first wave of the lockup on insider selling to expire next Thursday and let it drag the share price lower before you pull the trigger," Cramer said on Tuesday.
SpaceX will report results Aug. 4. Two trading days later, employees and some investors can sell up to 911.5 million shares, more than doubling the tradable supply. Reuters reported that further releases could expand the float to 40% by Dec. 8, while Elon Musk’s stake remains restricted until mid-2027. SpaceX’s SEC filings outline the staggered release schedule.
"Generally speaking, more supply results in lower prices," Cramer said. "Even if they report a great quarter on Tuesday, I don’t know if it can withstand the lockup expiration on Thursday."
SpaceX Stock Extends Its Post-IPO Retreat
The warning marks a shift from June, when Cramer said buyers were "going nuts for SpaceX" during its post-IPO surge and later remarked that the stock "might as well be called Elon Musk."
Shares closed Tuesday at $116.41, down about 5.8% over five trading sessions and 13.8% below the $135 IPO price. The stock has fallen roughly 48% from its June 16 closing high of $225.64, erasing most early gains.
Cramer said investors should examine SpaceX’s agreements to rent excess artificial-intelligence computing capacity to Anthropic and Alphabet Inc. (NASDAQ:GOOG)(NASDAQ:GOOGL). "Those two deals can be canceled by either party with 90-day notice," he said. "Nobody’s really locked in."
Investors Split Over SpaceX’s Long-Term Outlook
The Future Fund’s Gary Black remains more bearish, predicting SpaceX could fall below $100 and saying surprised shareholders "don’t do valuation math." By contrast, Ross Gerber said the selloff could create a buying opportunity, while Ark Invest’s Cathie Wood continued adding SpaceX exposure.
Cramer will also watch Starlink subscriber growth and Starship progress, but he argued that long-term promise does not eliminate near-term supply risk.
Price Action: SPCX shares were trading 0.14% higher at $116.57 in pre-market trading on Wednesday.
Benzinga edge rankings indicate SPCX stock has a negative price trend across the short, medium, and long term.
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