DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

SpaceX shares have lost more than half their value from the stock’s early peak, yet retail investors are still charging into the wreckage. Even the rocket company’s sharp decline following its first public earnings report failed to break their buying streak.

Individual investors purchased a net $22.7 million of SpaceX shares during the first hour of trading Wednesday, according to Vanda Research. That inflow was more than three times the stock’s average opening hour total and ranked as its third largest opening haul across 37 trading sessions.

The buying extended a remarkable run that began with the company’s June 12 market debut. Vanda said SpaceX has not recorded a single trading day with net selling by retail investors.

Enthusiasm has cooled considerably from the frenzy surrounding the initial public offering, but it has not disappeared. Retail traders bought $405 million during the first five sessions, compared with $103 million across the five sessions preceding earnings.

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SpaceX priced its initial offering at $135 per share before rocketing to an intraday high of $225.64 on June 16. Since then, the shares have surrendered more than half their value from that peak and fallen below the original offering price.

That brutal reversal would usually chase speculative money toward the exits, particularly after an early surge built on excitement and limited trading supply. Instead, individual investors appear to be treating every decline as another opportunity to accumulate shares.

“Retail investors want to own stocks with 10-bagger potential; SPCX happens to be one of those names for retail right now,” Vanda wrote. The firm was referring to the market’s popular term for an investment capable of growing to 10 times its original value.

SpaceX’s first quarterly report as a public company gave both bulls and bears ammunition. Revenue and adjusted earnings exceeded Wall Street expectations, but investors were rattled by nearly $16 billion in quarterly spending tied to artificial intelligence and data centers.

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Retail buyers appear willing to view that massive spending bill as an investment in future dominance rather than an immediate threat to profitability. The broader market was less forgiving, sending the stock sharply lower as shareholders confronted the price of SpaceX’s expansion ambitions.

“Retail continue to see SPCX as a transformational AI story — as opposed to a space exploration or interplanetary travel stock,” the firm wrote. That distinction helps explain why the company’s supporters remain focused on long range possibilities rather than one expensive quarter.

The next test could be far more difficult because a major lockup period is expiring. As many as 912 million shares owned by employees and investors who bought before the public offering are expected to become eligible for sale Thursday.

That potential supply could more than double the current public float, meaning the pool of shares available for everyday trading may expand dramatically. A larger float can improve liquidity, but it can also pressure prices when early holders decide to cash in substantial gains.

The expiration does not compel employees or early backers to sell any shares. It merely removes restrictions on eligible holders, many of whom acquired their stakes at prices far below the $135 offering level and may have powerful incentives to realize profits.

For retail investors, the danger is straightforward because relentless dip buying cannot guarantee a bottom when hundreds of millions of additional shares may enter the market. The looming supply could overwhelm demand, especially if institutional investors remain uneasy about SpaceX’s capital spending.

Still, the company’s retail following has already displayed unusual conviction through a collapse that would shake many seasoned traders. Thursday will reveal whether those buyers truly view SpaceX as a generational artificial intelligence opportunity or whether an avalanche of newly eligible shares finally breaks their resolve.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.