Gary Black, managing director of The Future Fund LLC, stated that SpaceX’s early trading surge may be losing its “meme stock” character, according to Benzinga. The comments were made on June 17, 2026, following changes in options trading that enabled investors to bet against the stock.
What happened
Gary Black addressed concerns about SpaceX’s trading dynamics on social media, asserting, “That may be ending.” He noted that the recent introduction of options trading has allowed investors to purchase bearish positions, which could impact stock performance. The stock fell by 4% following this announcement, illustrating investor reactions to market changes.
“I have resisted commenting on SPCX as it acts more like a meme stock than one driven by fundamentals (revs, cash flows, valuation),” Black stated.
Black highlighted that earlier, a lack of options for shorting SpaceX shares contributed to a 50% increase since the stock’s initial public offering price of $135. Limited selling options allowed bullish investors to thrive while suppressing bearish sentiment in the market.
Why it matters
Investors are closely monitoring SpaceX’s trajectory as the market grapples with shifting dynamics. Understanding the balance between bullish and bearish positions will be critical to determining the stock’s future performance. If the trend continues, it could signify a broader shift in investor confidence within the space industry.
Background
On May 20, 2026, SpaceX launched its IPO, marking a significant milestone for the company. Black expressed skepticism regarding its initial valuation of $1.75 trillion, suggesting that such pricing was excessive. “I would be more interested after it falls by 50%,” he remarked at the time.
Since the IPO, investors had faced lockup restrictions that limited their ability to sell shares. These dynamics set the stage for a volatile trading environment, especially as the expiration of lockups is anticipated to increase selling options.
What’s next
Key events include the expiration of stock lockups beginning in August 2026, which could lead to increased volatility as more investors look to take bearish positions on SpaceX.
