AI Generated Image
SpaceX Stock: Why IPO History Prompts A Double-Upgrade (NASDAQ:SPCX)
Seeking Alpha • • general
Key Points:
- SpaceX (SPCX) stock has been upgraded to a buy after experiencing a 51% decline from its peak, aligning with historical IPO patterns that suggest such drawdowns present attractive long-term entry points.
- The stock currently trades about 15% below its IPO price, with technical support emerging around $111, a key buy zone near $102, and a confirmation level at $120.
- Despite heavy selling pressure and upcoming share unlocks, the decline is seen as largely pricing in supply risks, while major Wall Street analysts, including Morgan Stanley with a $300 target, remain bullish.
- Investors are eyeing SpaceX's Q2 2026 earnings report on August 4 as a potential catalyst for significant price movement, supported by implied volatility at 115%.
- The article emphasizes that a typical maximum drawdown for IPO stocks is around 55%, placing SpaceX’s current decline within historical norms and suggesting a possible rebound opportunity.
