SpaceX attracts retail buyers after post-earnings share slide

Aug 5 : Retail investors continued to pile into SpaceX shares on Wednesday, buying the dip after a sharp drop following the company’s first ever earnings report as a public company.

Mom-and-pop traders bought a net $22.7 million in SpaceX shares in the first hour of trading alone, the third-highest first-hour total in the 37 trading sessions since the company went public, according to Vanda Research data.

“This tells us that retail dip-buying has not stepped back after the earnings sell-off – they’ve become even more opportunistic,” Vanda Research said in the note.

The financial data firm said Wednesday could become the second-biggest day for retail net buying since listing if the pace holds, behind only June 16, when net buying stood at $144.6 million.

SpaceX has not recorded a day of net retail selling since its June 12 IPO, the biggest in U.S. history at $135 per share.

Shares of the rockets-to-AI company dropped as much as 12.9 per cent following its earnings report as investors grew concerned about how long its profitable Starlink business could continue to bankroll costly AI investments.

Overall trading was robust, with more than $10.5 billion worth of SpaceX shares changing hands as of 11:47 a.m. ET, according to LSEG-compiled data.

SpaceX was the most bought U.S. stock among retail investors on Wednesday as per Vanda, following by chipmaker Advanced Micro Devices. AMD shares were last down 6.5 per cent following a quarterly earnings report.