SpaceX stock has come under renewed pressure after market commentator Crypto Patel reiterated his view that the company could face a deeper post-IPO correction before establishing a stronger long-term base.
After debuting at $135 and climbing to an all-time high of $225.60, the stock has retreated to around $107, representing a 52% decline from its peak. Crypto Patel said the recent price action aligns with his earlier warning that a significant correction could follow the stock’s initial rally.
The correction in SpaceX stock price has become particularly notable, considering the timing, as it occurred just a few weeks after the expected IPO of the firm. Currently, the stock is trading at a level approximately 46% below its record-high closing price of $201.80, set on June 16. Market participants have considered several factors such as post-IPO selling pressures, changing expectations related to growth-oriented tech stocks, and others.
Also Read | ETH Price Eyes $2,800 as Whale Accumulation Fuels Bullish Outlook
SpaceX Stock Mirrors Historic Tech Declines
Crypto Patel emphasized that SpaceX stock is now approaching the range of $50-$70, where he sees it as a potential accumulation point for a long-term strategy, arguing that many leading technology firms faced strong corrections during previous cycles, which is an expected phenomenon rather than an exception.
SpaceX’s performance with historical declines in major technology companies. He noted that Amazon once fell 95%, Nvidia declined 90%, Apple dropped 82%, Tesla lost 75%, and Microsoft experienced a 70% correction before later recovering.
SpaceX Lock-Up Expiration Could Release $123 Billion
The SpaceX company will release its earnings on Aug. 4, while the expiration of a major lock-up period will follow just two days after that. As many as 911.5 million insider shares, worth about $123 billion based on today’s price levels, will become sellable. Prior to the expiration of the lock-up, only 629 million shares were traded after the IPO.
In case all the shares become sellable, SpaceX will have a public float of around 1.54 billion shares, which represents an increase of about 145% from the original public float. Not all the shares will get sold once the lock-up expires, but the increased supply may exceed the total number of shares in the original public float of the company.
Also Read | TRON (TRX) Price Eyes $0.37 as Tron Inc. Expands TRX Treasury Holdings
