Retail investors turned into net sellers of SpaceX (NASDAQ:SPCX) shares on Friday for the first time since Elon Musk’s space company completed its initial public offering in June, according to data from Vanda Research.
Individual traders sold a net $4.5 million of SpaceX shares on August 7, representing the first day of negative retail flows since the company made its stock market debut on June 12.
The amount remains relatively modest compared with the heavy retail activity that followed the IPO. At the peak of buying interest, individual investors purchased a net $144.6 million of SpaceX shares on June 16.
Retail sentiment shifts after heavy buying during selloff
Friday’s move into net selling came only two days after retail traders had returned aggressively to the market during a sharp decline in SpaceX shares.
On August 5, individual investors bought the stock as it plunged 13.6%, making that session the fourth-largest day of net retail purchases since the company went public.
The decline followed SpaceX’s first quarterly earnings report as a publicly traded company. The update pointed to faster returns from the company’s artificial intelligence investments, although investors continued to question how long profits generated by Starlink could support the scale of spending required for its AI ambitions.
The contrasting flows suggest some retail investors may now be becoming more cautious after repeatedly buying weakness in the shares following the IPO.
SpaceX shares surrender post-IPO gains
SpaceX initially attracted strong demand after listing at an IPO price of $135 per share in June.
At one stage, the stock traded as much as 67% above its offer price as enthusiasm surrounding the company’s space, Starlink and artificial intelligence businesses fuelled investor demand.
That rally has since reversed sharply. By August, SpaceX shares had fallen more than 22% below the original $135 IPO price, erasing all of their early post-listing gains.
The stock has also closed below its IPO price every trading day since July 16, highlighting the deterioration in market sentiment following the initial surge.
SpaceX rebounds in Monday pre-market trading
Despite Friday marking the first session of net selling by retail investors since the IPO, SpaceX shares showed signs of recovering before Monday’s opening bell, gaining around 2.5% in pre-market trading.
The modest rebound follows a highly volatile period for the newly listed company as investors attempt to assess the balance between the strength of its established Starlink operation and the substantial capital required to pursue its wider artificial intelligence ambitions.
Retail flows will remain an important indicator of sentiment towards SpaceX (NASDAQ:SPCX), particularly given the significant role individual traders played in supporting the shares during earlier declines.
Friday’s shift to net selling therefore represents a notable change in behaviour, even though the $4.5 million outflow remains small compared with the scale of retail purchases recorded immediately after the IPO.