SpaceX (NASDAQ:SPCX) is facing increased bearish pressure as short sellers ramp up their bets against the company.
Nearly 185 million shares, or about 29% of the public float, are now sold short, representing $25 billion in wagers, according to CNBC.
This marks a significant increase from just three weeks ago when short interest was between 5% and 7%. The surge in short selling comes as SPCX’s stock struggles, having dropped below its $135 IPO price on Wednesday.
Short Sellers Increase Positions
The increase in short selling activity has been dramatic, with short interest ballooning from an estimated 40 million shares to 185 million shares.
Matthew Unterman, head of research at S3 Partners, noted the continuous demand from short sellers building speculative positions since the IPO. CNBC reported this trend has contributed to the stock’s downward momentum.
SpaceX Stock Dips Below IPO Price
SPCX’s stock has been under pressure, falling about 20% in July. On Wednesday, it slipped below its IPO price of $135 for the first time. The dip coincided with a last-second abort of a Starship test, further affecting investor sentiment. SpaceX shares are trending lower Friday as a result, with bearish sentiment continuing to grow among traders.
Technical Analysis
SPCX is currently on a six-day losing streak, with its market cap shrinking by approximately $240.01 billion over the past week. Despite the recent downturn, SPCX trades 43.74% above its 50-day simple moving average of $87.04 and 218.27% above its 200-day simple moving average of $39.31, indicating a long-term uptrend remains intact.
Photo: Shutterstock
