SpaceX Shares attracted heavy buying from retail investors on Wednesday after the stock dropped sharply following the company’s first earnings report since its public listing.
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According to Vanda Research, individual investors bought a net $22.7 million worth of SpaceX shares during the first hour of trading. The figure marked the third-highest first-hour retail buying total in the 37 trading sessions since the company’s June 12 initial public offering (IPO).
Confidence Remains Strong
Vanda Research said the strong demand showed that retail investors remained confident despite the earnings-related sell-off.
Moreover, the research firm noted that individual investors have become increasingly willing to buy SpaceX shares during price declines.
If the momentum continues, Wednesday could become the second-largest day of net retail purchases since the IPO. The largest buying session remains June 16, when investors purchased a net $144.6 million worth of shares.
Stock Slides After Earnings
SpaceX has not recorded a single day of net retail selling since its stock market debut.
The company launched its IPO at $135 per share, the largest public offering in U.S. history.
However, the stock fell by as much as 12.9% after investors questioned whether the profitable Starlink satellite internet business could continue funding the company’s expensive artificial intelligence investments.
Heavy Trading Continues
Trading activity remained strong throughout the session.
More than $10.5 billion worth of SpaceX shares changed hands by late morning. Meanwhile, Vanda Research said SpaceX became the most-purchased U.S. stock among retail investors on Wednesday.
Chipmaker AMD ranked second on the list after its shares also declined following the release of its quarterly earnings.
