Despite surging retail interest, SpaceX shares have tumbled more than 25% over a three-day skid, testing the resolve of retail investors as the aerospace giant navigates valuation concerns and its first-ever bond sale.
- Retail investors bought over $405 million of SpaceX stock in the first five trading sessions, marking the largest first-week retail inflow on record, according to Vanda Research.
- The previous record was held by Rivian, which saw $185 million in its first week in November 2021 — less than half of SpaceX’s total.
- Separately, SpaceX’s inaugural bond offering, launched on Monday, attracted more than three times its outstanding long-term debt.
Retail investors reportedly bought over $400 million of SpaceX (SPCX) stock during its first five trading sessions. The Kobeissi Letter, citing Vanda Research data, put the figure at $405 million over the period and also said that this marked the largest first-week retail inflow on record and outpaced any IPO in history.
Separately, media reports suggested SpaceX’s inaugural bond offering drew demand exceeding three times its outstanding long-term debt.
By comparison, Rivian (RIVN) saw the second-largest first-week inflow, with retail investors putting in over $185 million in November 2021, which was less than half of SpaceX’s total.
Vanda Research also noted that the inflows SpaceX saw over five sessions exceeded the combined purchases of the Magnificent 7 stocks, which totaled $158 million over the same period.
No stock debut has ever generated this much retail demand, Vanda mentioned in its report.
SPCX stock was on-track to end the session about 3% higher, breaking past three consecutive days of losses.
SPCX’s Bond Offering Also Sees Significant Demand
Space Exploration Technologies Corp.’s (SPCX) inaugural bond offering, launched on Monday, attracted more than three times its outstanding long-term debt.
According to a Bloomberg report citing people familiar with the matter, SpaceX has drawn demand worth about $89 billion for its first bond offering.
The report added that SpaceX is seeking to raise between $20 billion to $25 billion from the bond sale. At the low end of the expected raise, the demand outstrips the funds sought by more than four times.
In a filing with the U.S. Securities and Exchange Commission (SEC) on Monday, SpaceX stated that it is offering the unsecured bonds to qualified institutional buyers.
SPCX Stock: Retail View
Retail sentiment on Stocktwits around SpaceX trended in the ‘neutral’ territory at the time of writing with ‘extremely high’ message volumes. Retail chatter has surged nearly 240% over the previous session.
ETFs in which SpaceX is a part, like The ARK Innovation ETF (ARKK) is down 2.2% year-to-date, while the iShares A.I. Innovation and Tech Active ETF (BAI) is up 49%.
The Tema Space Innovators ETF (NASA) is up 20% during this period and the Procure Space ETF (UFO) gained 25.6%.
SPCX stock is up 6.3% year-to-date.
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