SpaceX stock faces downward pressure as additional shares enter the float, with analysts warning that a valuation exceeding 60 times revenue leaves little room for error despite strong growth.
SpaceX's upcoming lockup releases threaten to increase share supply while the stock trades above 60 times revenue, making the author cautious about buying at current levels.
SpaceX shares fell 3.9% to $147.55 following the release of 319 million shares from lockup. While the company continues to see rapid revenue growth, the stock trades at a premium of over 60 times revenue, prompting caution regarding further supply dilution. With billions of shares scheduled for release through late 2026, investors are advised to wait for more attractive entry points.
The release of shares increases the potential supply in the market, which can create downward pressure on the stock price, though the actual impact depends on whether holders choose to sell their newly eligible shares.