SpaceX Shares Recover Above IPO Price After Strong Earnings

Shares of Space Exploration Technologies Corp. have rallied to approximately $140 to $145, recovering from a low of $104 to surpass the company's initial public offering price of $135. The rebound follows the August 6 expiration of the first lockup period; the absence of significant insider selling has been viewed by the market as a sign of internal confidence.

The recovery is supported by strong second-quarter results, with revenue increasing 92% year-over-year to $7.8 billion. Growth was particularly aggressive in the AI segment, which rose 247% to $2.561 billion, and connectivity, which grew 66% to $4.291 billion. The company also narrowed its net losses to $541 million from $1 billion the previous year, while adjusted EBITDA nearly tripled to $3.5 billion.

Despite these gains, the company maintains a valuation of nearly $1.9 trillion, leading some analysts to warn that the price is excessive given a high price-to-sales ratio. Operational risks associated with Starship rocket testing also remain a concern. While CEO Elon Musk projects annual revenue could reach $1 trillion by 2030, investors continue to monitor phased lockup expirations over the coming year. The final lockup period, which allows Musk to sell his shares, expires one year after the IPO.