Source: Fortune
Summary
SpaceX is set to face a significant challenge as nearly a billion shares held by early employees and pre-IPO investors become available for sale on Thursday, potentially putting pressure on the company’s stock price. However, analysts believe that SpaceX has mitigated some of this pressure by securing inclusion in major indexes, which has generated demand for the stock. The company’s accelerated path into the indexes was negotiated before its IPO and has provided a cushion against the upcoming selling event.
Our Reading
The numbers tell one story.
SpaceX’s lockup expiration is expected to bring a supply shock to the market, but the company’s inclusion in major indexes has generated demand and provided a cushion. Investment banks have favored loyal shareholders, and some employees may hold onto their shares. However, the stock’s performance will ultimately depend on investors’ faith in Elon Musk’s vision for the company’s future.
You don’t need to be a rocket scientist to see that SpaceX is trying to manage its stock price.
Author: Evan Null
