SpaceX Shares Slip Below Listing Price as CZ Reaffirms Support

CZ’s remarks and the share price

According to Yahoo Finance, Binance founder Changpeng Zhao said on Saturday that SpaceX would be one of the best stocks to hold for years. The report says that a few hours earlier, SpaceX shares closed at $134.72, which was just below the company’s $135 June listing price. That meant investors who bought at the listing price were slightly underwater.

Questions about Binance’s SpaceX stake

Yahoo Finance reports that Binance holds more than $1 billion in SpaceX stock. The stake started as a $500 million bet tied to Elon Musk’s 2022 Twitter takeover. The report says CZ referred to those shares on Friday while discussing the losses from a hack, and some users interpreted his comments as a threat to sell. CZ denied that reading. He said, "I never said \"selling SPCX shares\"" and added that he does not make threats and believes SpaceX will remain a strong long-term holding, according to the article.

Options traders and the December unlock

According to Yahoo Finance, traders in options markets are positioning for a move around the time SpaceX’s final locked shares become available to sell. The report says Nasdaq’s schedule shows the last batch of locked-up shares can be sold on December 8. OptionCharts data cited in the article shows December 18 options pricing in a move of about $19, or 14%, which implies a range of $117 to $155.

Analyst views and valuation concerns

Yahoo Finance says 35 analysts tracked by TipRanks cover SpaceX, with 29 rating the stock a Buy. Their average target is $250.34, or about 86% above Friday’s close, and even Piper Sandler’s lowest target of $140 is above the current share price. The article adds that a bear case centers on valuation: MarketBeat puts the stock at about 518 times annual profit, even after third-quarter revenue increased 161% to $14.57 billion.

Recent unlock history

The report notes that the December 8 unlock comes 10 days before the options expire. It also says the last major unlock moved differently, with more than 911 million insider shares becoming available on August 6 and SPCX rising more than 6% to around $115.