“SpaceX is suffering the same fate as so many major IPOs before it: a euphoric debut, unrealistic expectations, and a painful reality check,” Bilello noted.
Addressing those who believed the aerospace company would defy historical trends, he stated in his market broadcast, "A lot of people said, ‘No, Charlie, this time is different.’ Well, it’s not different."
The next major structural test for SpaceX arrives just two days after its Aug. 4 earnings report. On Aug. 6, the initial lockup period expires, freeing 911 million shares for early private investors to sell.
Because SpaceX grew from a $10 billion private company a decade ago to a trillion-dollar entity today, insiders sit on massive, unrealized gains.
“There’s definitely going to be some selling pressure,” Bilello cautioned, emphasizing the ongoing risk of staggered share releases driving the stock lower throughout the coming months.
The severe 51% drawdown impacts more than just everyday portfolios. Elon Musk recently lost his brief status as the world’s first trillionaire, joking online about his new “former trillionaire” title.
Bilello’s ultimate lesson to the market is simple: “Great companies can still be bad investments at the wrong price.”
SPCX shares were down 23.29% since listing, 25.54% over the last month, and 7.19% over the last five trading sessions. It closed 2.68% lower at $115.07 per share on Friday, and it was up/Down X% in premarket trading on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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