SpaceX stock plunged about 50% from its June 16 peak following a solid rally post-IPO. The selloff stemmed from profit-taking, worries over valuation, and fears related to upcoming lockup expirations. Despite the drop, Mike Zaccardi, a top-ranked analyst at TipRanks, upgraded SpaceX shares to Buy.
Zaccardi noted that similar sharp declines after initial public offerings often create attractive entry points for long-term investors. He also mentioned that much of the risk tied to lockup expirations has likely been priced in by now, tempering further downside.
The stock’s volatility reflects investor concerns as some insiders are allowed to sell shares after lockup periods, but history shows these moments can offer buying opportunities. This pattern echoes trends seen in other tech stocks navigating early trading hurdles.
