This article first appeared on GuruFocus.
Space Exploration Technologies Corp. (SPCX, Financials), Elon Musk’s space and AI company, jumped more than 10% as investors grew more comfortable with the stock after its first major post-IPO lockup expiration.
Shares had already gained 6% Thursday even as the number of shares available for trading more than doubled. That matters because investors had worried the sudden increase in supply could trigger another sharp selloff. Instead, the stock held up and extended its rebound Friday.
SpaceX is still trading below its $135 IPO price after a volatile stretch that erased hundreds of billions of dollars in market value.
The risk is not gone. Another 7% of shares are scheduled to unlock on Aug. 21, and the tradable float is expected to keep rising through December.
Investors also remain focused on heavy AI spending and the company’s lack of profitability. For now, though, the market appears to be treating the first unlock as less damaging than feared.