SpaceX's shares fell to $122.12, marking a 5.5% drop and extending a 10-day decline, which has seen the stock decrease 44% from its peak of $225.64. This decline has raised questions about the U.S. stock market's capacity to absorb a $2 trillion market-cap company.
Retail investors who bought call options are now facing losses, similar to institutional underwriters like Morgan Stanley and Goldman Sachs, who recently raised an additional $11 billion in equity for SpaceX. Despite the bearish sentiment, some investors are still optimistic; Don Kaufman from TheoTrade noted that the current prices present a buying opportunity.
On Friday, SpaceX traded over 500,000 options contracts, with a significant portion tied to put options, indicating a cautious outlook. However, data shows that many of the top trades were bullish, suggesting that some investors believe in SpaceX's long-term value, with Kaufman expressing willingness to buy shares at $100, maintaining that the company's valuation will remain substantial