SpaceX shares plummet 13.6% after earnings release, retail investors seize the opportunity to buy the dip

Source: Global Market Report

After SpaceX released its first financial report since going public, the stock price plummeted sharply, and retail investors seized the opportunity to buy the dip in large volumes on Wednesday. According to Vanda Research data, retail investors made a net purchase of $22.7 million worth of SpaceX shares in the first hour after the market opened, marking the third highest total net buying amount during the first hour across the 37 trading days since the company's IPO. “This indicates that, after the earnings report triggered a sell-off, retail investors’ enthusiasm for buying the dip has not waned but rather they are even more inclined to seize the opportunity,” Vanda Research said in its report.

The financial data company stated that, if momentum continues, Wednesday could become the second-highest trading day for retail investors’ net purchases since SpaceX went public, second only to June 16 (when the net purchase amount was $144.6 million).

Since completing the largest IPO in U.S. history on June 12 with a share price of $135, SpaceX has not yet had a trading day on which retail investors made a net sale. After releasing its financial report, SpaceX saw its share price tumble by 13.6%, as investors started to worry about how much longer its profitable Starlink business can provide funding for the high-cost Artificial Intelligence (AI) investments.

According to Vanda data, SpaceX was the most purchased U.S. stock by retail investors on Wednesday, followed by chip manufacturing company AMD.