Space Exploration Technologies Corp. (NASDAQ:SPCX) shares are pulling back further Tuesday, extending Monday’s slide, as a broader risk-off tape and a Falcon 9 launch weigh on the stock.
- SpaceX stock is showing notable weakness. What’s weighing on SPCX shares?
SpaceX Falcon 9 Launches 29 Starlink Satellites Tuesday
SpaceX launched a Falcon 9 rocket carrying 29 Starlink broadband satellites from Cape Canaveral at 11:58 a.m. Tuesday, Reuters reported. The launch had been scheduled for Monday morning but was scrubbed and rescheduled for Tuesday.
SpaceX Underperforms Weakest Sector on the Market
Communication Services is the worst-performing sector Tuesday out of 11 sectors, and SpaceX is lagging even within that group. The sector has struggled recently, falling 0.26% over the past 30 days and 4.68% over the past 90 days.
Market breadth is tilted negative Tuesday, with an advance/decline ratio of 0.8 and only five of 11 sectors advancing. Utilities are up 1.15% and Energy is up 1.06%, reflecting a rotation into defensive sectors. That backdrop is making it easier for sellers to push down stocks that have led the market or are priced for high growth, including SpaceX.
SpaceX shares traded above their $135 IPO price earlier Tuesday before falling back below that level as the session progressed, according to Benzinga Pro.
SpaceX Insider Unlock Failed to Trigger Expected Sell-Off
More than 911.5 million insider-held shares became eligible for trading last Thursday, more than doubling SpaceX’s publicly available float overnight. The anticipated wave of selling never came. Instead, the stock gained nearly 3% on the day the shares became eligible, suggesting much of the lockup anxiety had already been priced in during the pullback that preceded the unlock. Shares then rallied sharply the following day, a rally that Tuesday’s decline is now unwinding.
Individual investors sold a net $4.5 million in SpaceX shares last Friday, the first negative reading since the company began trading June 12, according to Vanda Research data reported by Reuters.
A Look Back at SpaceX’s Second-Quarter Earnings
SpaceX reported second-quarter revenue of $7.81 billion last week, up 92% year over year and above the $6.93 billion consensus estimate.
SpaceX posted a per-share loss of 9 cents, better than the 24-cent consensus loss estimate. Starlink subscribers reached 12 million across 167 countries, and the company ended the quarter with $100 billion in cash and cash equivalents along with a $47.5 billion backlog.
SPCX Shares Are Falling
SPCX Price Action: SpaceX shares were down 4.79% at $132.10 at the time of publication on Tuesday, according to Benzinga Pro.
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