SpaceX Stock Fell Below Its IPO Price, But Binance’s CZ Is Bullish

JPMorgan SpaceX call sees nearly 80% upside in SPCX stock on AI, shown with bull imagery. Photo by BeInCrypto
JPMorgan SpaceX call sees nearly 80% upside in SPCX stock on AI, shown with bull imagery. Photo by BeInCrypto

Binance founder Changpeng Zhao (CZ) said Saturday that SpaceX will be one of the best stocks to hold for years. Hours earlier, the shares closed at $134.72, just under their $135 June listing price.

That leaves anyone who bought at the listing slightly underwater. Wall Street analysts still see 86% upside. Options traders, however, are paying for a 14% swing in either direction by mid-December.

SpaceX Stock (SPCX) Performance Since IPO. Source: Yahoo Finance
SpaceX Stock (SPCX) Performance Since IPO. Source: Yahoo Finance

Is Binance Selling Its SpaceX Shares?

Binance holds more than $1 billion in SpaceX stock. The stake began as a $500 million bet on Elon Musk’s 2022 Twitter takeover.

On Friday, CZ cited those shares while tallying the hack shortfall, as BeInCrypto reported. Some users read it as a threat to sell. CZ rejected that.

“I never said “selling SPCX shares”… I don’t make threats… And I think it will be one of the best stocks to hold for a long time to come,” CZ articulated.

Binance co-CEO Yi He has said this year’s revenue covers the losses from the $6 billion heist.

Why Are Options Traders Bracing for December?

Lockups bar early investors from selling for a set period after a listing. SpaceX’s final batch of locked-up shares becomes sellable on December 8, according to the schedule published on Nasdaq.

Options contracts expiring December 18 price a move of about $19, or 14%, according to OptionCharts. That implies a range of $117 to $155.

SpaceX stock expected move by options expiry, Source: OptionCharts
SpaceX stock expected move by options expiry, Source: OptionCharts

The last major unlock went the other way. When over 911 million insider shares unlocked on August 6, SPCX rose more than 6% toward $115.

How Much Upside Do Analysts See?

Of 35 analysts tracked by TipRanks, 29 rate SpaceX stock a Buy. Their average target of $250.34 sits about 86% above Friday’s close.

Even the lowest target, Piper Sandler’s $140, is above the current price.

SpaceX stock analyst price targets, Source: TipRanks
SpaceX stock analyst price targets, Source: TipRanks

Valuation is the bear case. SpaceX trades at about 518 times its annual profit, per MarketBeat, even after third-quarter revenue jumped 161% to $14.57 billion.

The December 8 unlock lands 10 days before those options expire.

Read the Original story SpaceX Stock Fell Below Its IPO Price, But Binance’s CZ Is Bullish by Lockridge Okoth at beincrypto.com

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