The retail frenzy surrounding SpaceX shares appears to be cooling after nearly two months of consistent buying. According to data from Vanda Research, individual investors acted as net sellers for the first time since the company went public on June 12. Traders offloaded a net $4.5 million in shares this past Friday, signaling a potential shift in sentiment for one of the market's most discussed names.
This move marks a departure from the behavior seen since the initial public offering. Retail investors accounted for a significant portion of the initial demand, with the company allocating 20 percent of its shares to individual buyers. This level of participation far exceeded the typical 5 to 10 percent range seen in similar offerings. The IPO itself generated more than $70 billion in retail orders as investors sought exposure to Elon Musk's rocket and satellite business.
Despite the recent selling, the stock showed signs of recovery on Monday. It climbed back to its IPO price of $135 for the first time since mid-July. This follows a volatile period that saw the stock price drop by half from its peak of $225.64 in June. The company also weathered a challenging week that included an earnings report and the expiration of a lockup period, two events that often test investor confidence.
Analysts are watching to see if this sell-off is a temporary pause or a broader change in retail strategy. While individual traders continued to buy the dip throughout August, the recent move to net selling suggests that the initial momentum has slowed. Whether the stock can maintain its position above the IPO price will likely depend on continued institutional interest and upcoming operational milestones.