SpaceX shares plunged to $107.01 on Tuesday, marking the lowest price since its IPO, before bouncing back to close at $116.41. The stock is now trading about 48% below its mid-June peak of $225.64.
Jim Cramer warned investors to hold off on buying right away. On August 6, roughly 911.5 million shares will become eligible for sale, more than doubling SpaceX’s public float and likely pressuring the price further.
“If you want to go big, wait for the lockup expiration to push the stock lower before making a move,” Cramer advised.
SpaceX will report its first earnings as a public company after market close on August 4, with attention focused on its AI segment. The company secured multibillion-dollar deals with Anthropic and Alphabet, but Cramer highlighted the contracts’ 90-day termination clauses, complicating revenue projections. He also questioned how many similarly deep-pocketed partners SpaceX can attract.
Despite optimism about Elon Musk’s leadership, Cramer sees Wall Street’s long-term earnings estimates as unreliable. The August 6 lockup expiration could trigger more volatility, even if the earnings report surprises positively.
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