I’d Wait 90 Days Before Buying More SpaceX Stock. Here’s Why.

Key Points

• SpaceX only made around 4% of its total shares initially available to the public during its IPO.

• The first lock-up period, when insiders can sell some of their shares, hasn’t arrived yet for SpaceX.

• History suggests there’s a good chance SpaceX will underperform in the first few years after its IPO.

• 10 stocks we like better than Space Exploration Technologies ›

No stock has been discussed as much over the past few weeks as Space Exploration Technologies (NASDAQ: SPCX), or SpaceX, as the company set an initial public offering (IPO) record, raising $75 billion and being valued at $1.77 trillion.

The stock experienced a nice run-up in its first few trading days but has since been on a downward trajectory. As of market close on June 23, SpaceX’s stock was down 3% since its IPO. Many investors expected the volatility it has been experiencing, but it may be sooner than expected.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »

Regardless of how SpaceX pans out over the next few weeks, I wouldn’t consider investing in SpaceX (or adding more shares) for another 90 days. Here’s why.

Image source: Getty Images.

More shares will be hitting the market soon

To prevent a bunch of shares from hitting the market for sale immediately after an IPO (which could cause the stock to crash), the U.S. Securities and Exchange Commission (SEC) encourages a lockup period where insiders, such as employees and investors, must hold on to their shares before being able to sell them. The SEC doesn’t legally require a set lockup period, but it’s universally accepted as good business practice.

SpaceX also made only about 4% of its total shares available to the public in its IPO. As milestones are met, SpaceX will issue additional shares to the public to gradually increase liquidity.

Here is the current schedule of SpaceX’s lock-up periods and the number of shares expected to be released at each time.

Data source: SpaceX’s 424B4 filing.

As more shares become available and insiders unload some of their holdings, SpaceX’s stock could face downward pressure. After the 90-day mark in September, when the second block of shares is released, we’ll have a clearer picture of how the market is reacting to the new shares. Less than 10% of SpaceX shares would be floating around, but that’s much more liquid than they are now.

Will SpaceX be a buy after 90 days?

One thing about the stock market is that nobody can predict how stock prices will move in the short term. We can make educated guesses, but those rely on rationality, and the stock market is far from rational. That said, history suggests that SpaceX’s stock could underperform over the first couple of years after its IPO.

There are exceptions to every rule, but that has been the norm for many blockbuster IPOs. I would reassess SpaceX’s stock after 90 days, but even then, I wouldn’t rush to invest unless it’s somehow trading at a much steeper discount.

Should you buy stock in Space Exploration Technologies right now?

Before you buy stock in Space Exploration Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $398,052!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,181,688!*

Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 205% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of June 27, 2026.

Stefon Walters has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.