Why Jim Cramer Says to Hold Off on Buying SPCX Right Now

SpaceX stock, trading under the ticker SPCX, has hit a fresh low after falling roughly 29% over the past month. The stock dropped to $107.01 on Tuesday before rebounding slightly to close at $116.41. That leaves SPCX well below its $135 initial public offering price and nearly 48% under its June high of $225.64.

Despite the big discount, TV host Jim Cramer is urging investors not to rush in just yet. The main reason is a massive supply increase coming on August 6, when roughly 911.5 million shares will become eligible for sale as insider lockup periods expire. Cramer noted that this flood of new shares will more than double the company's public float, which could drag the share price down significantly.

Traders also need to keep an eye on August 4, when the company reports its quarterly financial numbers after the market closes. Wall Street will pay close attention to its AI computing deals with Anthropic and Alphabet. However, Cramer warned that these contracts can be canceled with 90 days notice, making long term earnings estimates tough to rely on. For now, waiting for the insider selling wave to pass might be the smartest move for buyers.