SpaceX took a nosedive, skyrocketing from 135 to 225 in just a few days, and now it's dropped back down to 154, breaking its IPO price. The market cap has evaporated by 600 billion in three days. This is a classic case of panic selling in a low float.
With only 4.2% of shares in circulation at the start, there's a lack of long-term compliant funds stepping in (thanks to MSCI rating it at the lowest ESG CCC level, preventing them from accumulating). Any slight negative news about bond issuance can trigger a long squeeze, as traders rush for the exits. Retail investors who bought in at high prices quickly find themselves as cannon fodder.
Now, we’re just waiting for the first official earnings report at the end of July and the pressure test from the unlocking of restricted shares in August.
With only 4.2% of shares in circulation at the start, there's a lack of long-term compliant funds stepping in (thanks to MSCI rating it at the lowest ESG CCC level, preventing them from accumulating). Any slight negative news about bond issuance can trigger a long squeeze, as traders rush for the exits. Retail investors who bought in at high prices quickly find themselves as cannon fodder.
Now, we’re just waiting for the first official earnings report at the end of July and the pressure test from the unlocking of restricted shares in August.