DTV host Jim Cramer highlighted the upcoming expiration of lockup periods for SpaceX shares. Following the initial public offering in June, early investors and employees are restricted from selling their holdings, with the company releasing these shares in scheduled batches.
The most recent release on Friday involved 328.4 million shares, valued at nearly $51 billion. Cramer’s tracking data indicates that the largest upcoming tranche will consist of 1.31 billion shares. This batch is scheduled to become available for sale two trading days after the company reports its third-quarter financial results, though the specific date remains unannounced.
Despite concerns regarding the volume of shares entering the market, Cramer defended the current stock valuation. According to FactSet data, SpaceX is trading at approximately 137 times its expected earnings for the next 12 months. In contrast, investor George Noble has publicly estimated the fair value of the stock at $30 per share.
Market reactions to previous lockup expirations have been mixed, with the stock price rising during the August event and declining following the September 24 release. Cramer previously advised investors to exercise patience and wait for these lockup periods to conclude before making significant acquisitions.
