SpaceX stock rebounds 35% after IPO lockup expiration

SpaceX shares experienced a remarkable 35% surge following the expiration of its first post-IPO lockup, resulting in an approximate $500 billion increase in market value. This rebound defied expectations of a decline due to insider selling, showcasing the resilience of investor confidence in the company. The stock's performance reflects a growing belief in SpaceX's capabilities, particularly in the realm of artificial intelligence.

The lockup expiration allowed early investors to sell their shares, which typically leads to volatility. However, the decrease in short interest by over 20% indicates that many investors are betting on the stock's upward trajectory. Morgan Stanley's optimistic price target of $600 further underscores the positive outlook surrounding SpaceX.

SpaceX went public in June 2026 at a price of $135, and its stock briefly fell below this listing price shortly after the IPO. The recent surge in share price comes at a time when the market is increasingly focused on companies with strong AI capabilities. Analysts, including those at Morgan Stanley, have reiterated their positive outlook on SpaceX, emphasizing the potential of its AI platform.

The expiration of the IPO lockup is a critical moment for any newly public company, as it often leads to increased selling pressure. However, the strong rebound in SpaceX's stock suggests that investors are more focused on the company's long-term growth prospects rather than short-term fluctuations. This shift in sentiment is crucial for the company's future market performance.

The positive momentum in SpaceX's stock could lead to further growth and attract more investors in the coming months. As the company continues to innovate and expand its offerings, particularly in artificial intelligence, it may become a focal point for market watchers. Upcoming lockup expirations will be essential to monitor, as they could introduce volatility into the stock.

Analysts' ratings and price targets will also play a significant role in shaping investor sentiment. Continued interest in SpaceX's capabilities may drive further investment, solidifying its position in the market.