SpaceX Stock Rallies Retail Attention After Google's $94B Stake Disclosure

Google disclosed a $94.1 billion, 6% stake in
$SPCX, sparking heavy Reddit engagement on r/stocks and r/wallstreetbets.
Retail traders on r/smallstreetbets are doubling down on SPCX, dollar-cost averaging into the dip despite the stock trading below its IPO price.
News of lockup expirations beginning in August adds a key risk, with up to 911 million insider shares potentially hitting the market.

SpaceX Stock Catches Retail Attention After Google Stake Disclosure

Shares of

$SPCX surged back into the retail spotlight on Thursday after Google disclosed a $94.1 billion, roughly 6% stake in the company. The news, publicized in a quarterly filing, was the top-performing post on r/stocks with 758 upvotes and 131 comments. It also appeared on r/wallstreetbets, where it drew an additional 20 upvotes and 21 comments. The disclosure highlights Google's deepening ties to SpaceX as it expands orbital data centers for AI workloads.

Beyond the Google news, a separate thread on r/smallstreetbets captured the sentiment of retail traders who are doubling down on

$SPCX as the stock continues to slide. The post, titled "SpaceX keeps dropping and the dip keeps getting bought. Brave or delusional?", garnered 330 upvotes and 386 comments—the highest comment count across all SPCX-related posts. The author described dollar-cost averaging into every red candle, echoing a theme of conviction in the company's long-term thesis despite short-term pain.

News Context: Lockup Expirations and Capital Needs

Several Motley Fool articles published on July 23 provided context for the SPCX discussion. The most pressing topic: SpaceX's lock-up agreements beginning to expire in August. Approximately 911 million insider shares could become available, potentially doubling the public float. The stock has already fallen 47% from its $225 peak and now trades below the $135 IPO price. Additional tranches of shares will unlock through December, though Elon Musk and other major investors remain subject to a one-year lock-up.

Another article highlighted the massive capital requirements ahead. Morgan Stanley estimates SpaceX will need roughly $700 billion in external capital over the next decade to scale Starlink and its data center business, with positive free cash flow not expected until 2035. Rising interest rates and competition for capital could force dilutive equity raises or slower growth, a risk that resonated with Reddit users debating the stock's valuation.

SPCX

The Bigger Picture: SpaceX's Post-IPO Trajectory

SpaceX's record-breaking IPO in June reshaped major index funds, with the Nasdaq-100 and Russell 1000 adjusting inclusion rules to accommodate the mega listing. The company's first earnings report is scheduled for August 4, and analysts are divided on whether the report will move the stock—some argue that the real pressure will come from the lockup expirations, not the financials. Despite the recent decline, the median analyst price target remains $225, representing significant upside if the company can execute on its Starlink and Starship ambitions.

For now,

$SPCX sits at the center of a tug-of-war between retail dip buyers and institutional caution. The Google disclosure provided a momentary bullish signal, but the looming lockup expiration and decade-long cash burn projection keep the stock under a cloud of uncertainty.

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