SpaceX attracts retail buyers after post-earnings share slide

Retail investors demonstrated a strong appetite for SpaceX shares on Wednesday, actively purchasing the stock following a notable decline after the company's inaugural earnings report as a public entity. This "dip-buying" behavior saw mom-and-pop traders invest a net $22.7 million in SpaceX shares within the first hour of trading, marking the third-highest first-hour total since the company's public debut.

According to Vanda Research, this sustained retail interest suggests that individual investors are becoming increasingly opportunistic, rather than stepping back after the earnings-driven sell-off. The firm noted that Wednesday's trading pace could position it as the second-biggest day for retail net buying since SpaceX's listing, surpassed only by June 16.

SpaceX has not experienced a single day of net retail selling since its initial public offering on June 12, which was the largest IPO in U.S. history at $135 per share. The company's stock experienced a significant drop, falling as much as 12.9 percent after its earnings announcement. Investors expressed concerns regarding the long-term profitability of its Starlink business and its capacity to finance the company's ambitious artificial intelligence investments.

Trading volume remained robust, with over $10.5 billion worth of SpaceX shares changing hands by mid-morning ET. Data from Vanda identified SpaceX as the most sought-after U.S. stock among retail investors on Wednesday, closely followed by chipmaker Advanced Micro Devices (AMD), whose shares also saw a decline following its own quarterly earnings report.

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This tells us that retail dip-buying has not stepped back after the earnings sell-off – they've become even more opportunistic.