SpaceX Stock Soars 10% as Argus Upgrades SPCX to Buy With $160 Target

TLDR

• SpaceX stock gained more than 8%, recovering toward $130 after its first major post-IPO lockup expired.
• About 911 million SpaceX shares became eligible for trading, adding roughly 7% to shares outstanding.
• Argus upgraded SpaceX to Buy and set a $160 price target following strong revenue growth.
• SpaceX reported $7.8 billion in Q2 revenue, up 92% year over year, while capital spending increased.
• Another 319 million shares could unlock on August 20, with further releases expected in September and October.

SpaceX stock surged more than 10% on Friday, approaching $130, after investors absorbed a major increase in tradable shares without the heavy selling that had been expected.

The rally followed the expiration of the company’s first major post-IPO lockup period. About 911 million SpaceX shares became eligible for trading, equal to roughly 7% of shares outstanding and more than the 639 million shares sold during its IPO.

Source: KnockoutStocks

The stock had faced pressure after SpaceX released its first earnings report on Wednesday. Shares had closed at $108.27 before Friday’s recovery, after concerns about rising capital spending and the larger supply of shares available to investors.

SpaceX Stock Recovers After Major Share Unlock

The lockup expiration gave early investors and other eligible shareholders the option to sell their holdings. However, the expected increase in selling pressure did not result in a sharp decline during Friday’s session.

Instead, buyers absorbed the additional supply, helping SpaceX stock recover toward $130. Market data showed SPCX trading around $125 after gaining more than 8% during the session.

---

---

Mizuho analysts said investors should distinguish between shares becoming eligible for sale and shares actually entering the market. The analysts noted that “shares becoming eligible for sale does not mean the full tranche will be offered into the market.”

More SpaceX shares are scheduled to become eligible for trading in the coming months. About 319 million shares could unlock on August 20, followed by roughly 700 million shares in September and a similar amount in October.

Argus Upgrades SpaceX Stock to Buy With $160 Target

The stock recovery also followed an upgrade from Argus Research. The firm moved SpaceX from Hold to Buy and set a $160 price target, citing the company’s revenue growth and operating performance.

SpaceX reported $7.8 billion in second-quarter revenue, representing a 92% increase from the same period a year earlier. The company has also indicated that its revenue run rate could approach $100 billion by the end of 2026.

SpaceX’s first earnings report also showed that capital spending had risen sharply. The higher spending reflects investments across the company’s space, satellite and artificial intelligence operations.

SpaceX Faces More Share Supply and Expansion Costs

The company’s stock initially climbed to about $150 after its Nasdaq debut in June before rising above $225. The shares later retreated, with Wednesday’s close marking a sharp decline from the June peak.

Bloomberg reported that the first lockup expiration could increase the supply available to investors, although the actual number of shares sold will depend on shareholder decisions.

Elon Musk remains the largest SpaceX shareholder, holding more than 6 billion shares. His holdings are subject to a separate lockup that runs until June 2027.

SpaceX is also expanding its infrastructure. The company is working with Tesla on a planned $16.8 billion Texas chip facility designed to support Starlink and other operations.

The company is also developing satellite-based computing systems and pursuing partnerships involving advanced Nvidia processors. These projects add to SpaceX’s capital requirements as it expands its businesses beyond launch services and satellite communications.