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Key Takeaways
- Elon Musk’s space, AI and connectivity company announced it will report second-quarter earnings on August 4.
- SpaceX’s stock rose more than 3% on Tuesday, snapping a seven-day losing streak, but remains well below its IPO price.
SpaceX is back to defying gravity.
Shares of SpaceX (SPCX) rose more than 3% on Tuesday to snap a seven-day losing streak after the company set a date—mark your calendars for August 4—for its first quarterly earnings report as a public company. The stock remains below its mid-June IPO price of $135.
With a market capitalization of around $1.6 trillion, SpaceX remains among the most valuable U.S. companies, though its value is a far cry from the near-$3 trillion market cap it had a few days after the IPO.
Why This Matters to You
SpaceX’s inclusion in a smattering of major indexes means that its performance will be reflected in retirement portfolios, and upcoming lock-up expirations could put downward pressure on the stock.
The arrival of SpaceX’s earnings date also puts another company catalyst in view: the first wave of lock-up expirations that would free up more than $116 billion worth of stock. Employees and early insiders would be free to trade some 911.5 million shares on the second full trading day after SpaceX’s first earnings report, or August 6.
SpaceX’s stock climbing could also trigger a share price-based lock-up. If the stock price is at least 30% higher than its IPO price, or $175.50, for “at least five of the ten consecutive trading days” ending on and including the earnings release date and the second full trading day following it, 455.8 million additional shares would be eligible for trading, according to company filings.
Read the original article on Investopedia
