SpaceX Earnings Report: Can The Stock Recover After Its IPO?

SpaceX is set to release its first earnings report as a public company this Tuesday, August 4. The company made history earlier this year with a massive $75 billion IPO. While the listing generated around $100 million in fees for Morgan Stanley and other top banks, the stock has struggled since its debut. Shares currently trade at $108.37, which sits significantly lower than the $135 initial offer price.

The massive inflow of wealth from the IPO helped Morgan Stanley grow its client assets, but the bank now faces the task of managing that money as it transitions into managed accounts. Investors are looking past the banking fees and focusing on the core business. Specifically, they want to see clear data on launch figures, Starlink revenue, and the balance between government and private contracts.

Market participants should pay close attention to the days following the report. On August 6, a major lockup period ends, allowing for the sale of over 911 million shares. This event creates significant pressure, as the potential supply of stock entering the market exceeds the total value raised during the initial IPO. Analysts currently project a loss of 26 cents per share, making this report a critical moment for the company to prove its long term value.