SpaceX Fell 3.9% on Its Third Lockup Release Since the IPO. I'd Wait to Buy the Stock.

SpaceX stock dropped 3.9% to $147.55 on Wednesday following the third lockup expiration since its June IPO, releasing 319 million shares held by employees and early investors into the market. The decline came despite a 9% rally in the three sessions leading up to the unlock.

Analyst Daniel Sparks advises investors to remain on the sidelines, pointing to the stock's valuation above 60 times revenue as a key concern. Additional selling pressure looms with billions more shares scheduled to unlock by early December, representing another wave of potential supply hitting the market.

The sequential lockup releases are standard for newly public companies but can weigh on share prices as insiders and early backers gain liquidity. SPCX has now faced three such events in the five months since going public, with the final major expiration approaching within weeks.