The trouble began after enthusiasm surrounding SpaceX’s blockbuster IPO collided with concerns about its lofty valuation, heavy spending requirements, and, of course, the lockup expirations. Those worries intensified following the company’s second-quarter report, when investors got another look at how much capital SpaceX is pouring into AI infrastructure and other expensive projects.
Last week, however, one of the biggest near-term concerns hanging over SpaceX finally passed without the damage many had feared. Thursday’s lockup expiration made about 911.5 million restricted shares eligible for trading, yet the anticipated selling pressure failed to materialize. That outcome eased one of the biggest concerns hanging over SpaceX shares, helping the stock finish the week substantially higher.
So, is the worst really over for SpaceX stock?
One 5-star investor, known by the pseudonym Simple Investment Ideas (SII), remains skeptical despite recognizing just how valuable SpaceX could eventually become.
“SpaceX could easily be the most important company on Earth,” SII argues, before making clear that business quality alone cannot justify any valuation. The investor adds that SpaceX’s importance “does not mean it would make sense as an investment at any price.”
