Particle.news
Download on the App Store

SpaceX Stock Falls Back to IPO Price After Lockup Release and Cursor Deal

Heavy AI capital spending has pushed free cash flow deeply negative and prompted investors to reassess the company.

Overview

  • The stock retraced toward its $135 IPO price after roughly 319 million shares became tradable on Aug. 20 and the company closed an all‑stock acquisition of Cursor that issued about 389 million new Class A shares.
  • Staged lockup expiries have materially increased tradable supply with about 911.5 million shares released on Aug. 6, the Aug. 20 tranche, and roughly 1.3 billion shares expected around third‑quarter earnings.
  • SpaceX reported strong second‑quarter revenue of about $7.81 billion, driven by Starlink’s growth to roughly 12 million subscribers and rising cloud/AI deals, but the quarter also showed a large loss and heavy spending.
  • Q2 capital expenditures totaled roughly $18.4 billion with about $15.8 billion spent on AI compute, a pace that produced sharply negative free cash flow and deepened investor concerns about dilution and funding needs.
  • Market reaction is split: some institutions increased stakes while DZ Bank initiated a Sell citing valuation and spending risks, and near‑term catalysts investors will watch include more lockup releases and Starship execution updates.