Why SpaceX Stock Just Gained 15.8%
SpaceX stock defied expectations Friday, climbing after a lockup expiration released over 900 million shares on Thursday.
Overview
Space Exploration Technologies Corp. (NASDAQ: SPCX) stock rocketed 15.8% higher on Friday while the S&P 500 and the Nasdaq Composite jumped 0.6% and 1.2%, respectively.
Shares of Elon Musk's rocket company rose after a post-IPO lock-up expiration failed to drag the stock down. At the same time, the announcement of a major project in Texas helped buoy the stock price.
Details
On Thursday, 911.5 million shares became eligible to trade as the first tranche of the lockup expired -- the stretch after an initial public offering (IPO) when insiders and early backers are barred from selling. That more than doubled the stock available to public markets, and investors were nervous the share price would tank as early investors and employees rushed to sell part of their stakes.
Source
Originally published at www.fool.com.