Shares of SpaceX (SPCX) showed a decline, returning to its initial public offering (IPO) price after another large batch of shares entered the market. Approximately 319 million shares, belonging to early employees and investors, became available for trading. This issuance is the seventeenth stage in a phased lock-up schedule that provides for the release of about 88% of the total 13 billion SpaceX shares by 2027.
As a result of this event, SpaceX shares fell almost 5% in early trading, dropping below the IPO price of $135. This followed a larger test earlier in the month, on August 6, when up to 911.5 million shares became available—an increase in supply that shares successfully absorbed, showing a 6% rise.
Investors are closely watching upcoming even larger supply tests. A massive issuance of 1.3 billion shares is planned, which should be released around SpaceX's third-quarter earnings report in early November, followed by a final expiration in December after 180 days. Nevertheless, a significant portion of 6.42 billion shares owned by CEO Elon Musk remains securely locked until June 2027.
Other corporate news reported that SpaceX was negotiating the acquisition of Cognition, an artificial intelligence company known for its coding agent Devin. However, both Cognition and Elon Musk quickly denied these rumors. Musk clarified on social media that discussions related solely to ensuring the effective operation of Grok for Cognition's operational needs.
These speculations arose against the backdrop of SpaceX's successful acquisition of Cursor, another prominent AI coding company, for $60 billion. Wall Street analysts reacted positively to the purchase of Cursor. Deutsche Bank analyst Edison Yu noted three main advantages of this acquisition:
Although Yu maintained his current stock rating and target price of $235, he raised his team's earnings per share (EPS) forecast by 11% and increased overall revenue forecasts by 1%. As SpaceX continues to manage large-scale share releases and aggressive artificial intelligence integration, market observers are focused on the company's upcoming financial milestones.