Options Market Braces for $225B Swing as SpaceX's First Earnings Loom
SPCX is trading near its 52-week low of $104.83 (12% above the low).
Summary
SpaceX's first-ever quarterly earnings report on Tuesday has options traders pricing in a massive 15% move, equivalent to a $225 billion swing in market value. The stock has already plunged 43% from its post-IPO peak, and the options market shows a bearish tilt. The company is expected to report a $1.55 billion EBIT loss on nearly $7 billion in revenue. Adding to the pressure, a lockup expiration on August 6 will free up 911.5 million insider shares for sale. Short interest is at a record 63% of free float, with shorts sitting on $18.4 billion in paper gains. This follows the June IPO that raised $86 billion and a subsequent $60 billion acquisition of Anysphere. The earnings report will be a critical test of whether SpaceX's $1.5 trillion valuation can be justified by its financials.
At the time of this announcement, SPCX was trading at $117.06 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.5T. The 52-week trading range was $104.83 to $225.64. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Reuters.