Retail investors became net sellers of SpaceX shares on Friday, August 7, for the first time since the company’s initial public offering (IPO) in June. Data from Vanda Research showed that individual traders sold a net $4.5 million of the stock, reversing a weeks-long trend of net buying. This shift occurred as the share price rose to approach its original $135 debut level following a period of volatility.
SpaceX launched its IPO on June 12, 2026, with at least 30% of available shares reserved for retail buyers. The stock initially rose 67% above its IPO price before declining in August, falling more than 22% below the debut price. Since July 16, the shares have consistently closed below $135. Last week, the number of shares available for public trading more than doubled after the expiration of the first lockup period, which is a contractual window during which certain shareholders are restricted from selling.
The selling on Friday followed a 13.6% share price drop on August 5, triggered by the company's first quarterly earnings report. While the company reported faster returns from artificial intelligence spending, investors expressed concerns regarding the cost of these investments relative to profits from its Starlink satellite business. Despite the net selling on Friday, the stock was up 1.4% at $134.95 in early trading on Monday.
For the broader market and future shareholders, the increased liquidity from the recent expiry of lockup restrictions means more shares are now circulating, which can contribute to price fluctuations. Market analysts, such as Sam North from eToro, noted that the selling occurred while the stock was rebounding, suggesting that investors are reassessing the risk-reward balance of the company. The stock remains a high-interest topic for retail traders, ranking as the second most mentioned ticker on the Reddit forum r/WallStreetBets over the past week.
What happens next depends on the company's ability to balance its AI expenditures with Starlink revenue and the market's reaction to future lockup expirations. As of Monday morning, the stock was trading just below its IPO price of $135. Investors will likely monitor whether the stock can break its streak of closing below the debut price, a trend that has persisted since mid-July. No specific dates for subsequent lockup expirations or the next earnings report were provided in the report.