SpaceX Stock Rebounds Above IPO Price as Retail Investors Sell for First Time Since Listing

Following a strong rebound last week, SpaceX (SPCX-US) closed above its IPO price on Monday (10th), but retail investors saw their first net sell-off since listing on Friday. Goldman Sachs cautioned that increasing valuation divergence in the market could lead to sustained high volatility.

SpaceX shares rose 4.23% on Monday, closing at $138.74, marking the first time since July 16 that the stock closed above its IPO price and the highest closing price since July 13.

However, data from market analytics firm Vanda Research shows that retail investors net sold $4.5 million worth of SpaceX stock on August 7, the first net sell-off by retail investors since SpaceX went public on June 12.

Industry observers note that retail investors have played a key role in SpaceX's public trading: during its IPO, SpaceX reserved at least 20% to 30% of shares for retail buyers, far exceeding the typical 5% to 10% allocation.

SpaceX's IPO attracted over $70 billion in subscription interest from retail investors.

Sam North, market analyst at investment platform eToro, said: "A shift from sustained net buying to selling is rarely due to a single catalyst. It's usually a combination of profit-taking, position fatigue, and investors reassessing the risk-reward balance. Friday's move is particularly interesting—retail investors turned net sellers as the stock rebounded near IPO price levels. This looks more like investors taking profits on the rebound rather than panic selling."

Jai Malhi, Senior Equity Strategist at Vanda, estimates that retail investors' average purchase price for SpaceX shares since IPO has been around $147, suggesting that "retail selling may be driven by a desire to reduce losses at an appropriate time."